AI Pays for News: Microsoft Strikes Australian Media Deal

Microsoft's AI chatbot Copilot will incorporate content from Nine's mastheads, such as The Sydney Morning Herald and The Age, into its search results. This groundbreaking deal establishes a payment structure for journalism used by the global technology firm. Copilot will display snippets and summaries, directing users to Nine's trusted news sources.

Nine's chief executive, Matt Stanton, emphasized the importance of verified journalism in AI outputs and hailed the collaboration as beneficial for AI users and protective of intellectual property. Microsoft's president for Australia and New Zealand, Jane Livesey, stated the partnership demonstrates how tech and media can collaborate for journalism's future.

This agreement emerges amidst ongoing debates between AI companies and the creative sector regarding fair content use and copyright. Tech giants have lobbied the Australian government for weaker copyright laws to train AI models. This push has faced strong resistance from creative industries and some media organizations.

Tory Maguire, Nine's managing director of publishing, described the deal as a milestone, noting Microsoft's commitment to attribution and the unlocking of new revenue streams. The financial terms remain confidential but are expected to be substantial. This agreement is the first of its kind in the Asia Pacific region between a major tech player and a news outlet.