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23 October 2024

OpenAI And Microsoft Invest Ten Million Dollars For Local News Innovation

Major partnership aims to introduce AI tools to empower struggling local journalism

Tackling the persistent issues faced by local journalism, OpenAI and Microsoft have teamed up to fund a groundbreaking initiative worth up to $10 million. This significant investment is intended to help local news organizations innovate and embrace artificial intelligence (AI) tools, bolstering their sustainability and efficiency.

The Lenfest Institute for Journalism, leading this project, has announced the first five recipients slated to benefit from the grant funding: Chicago Public Media, Newsday, The Minnesota Star Tribune, The Philadelphia Inquiry, and The Seattle Times. Each of these organizations will receive $500,000 to hire AI fellows over two years, aimed at fostering innovative applications of AI within their operations.

This collaboration, which incorporates technology and resources from OpenAI and Microsoft, was unveiled recently. With each company contributing $2.5 million directly and $2.5 million worth of enterprise credits, the aim is to empower these outlets to explore diverse AI-driven projects—from enhancing audience engagement to streamlining data analysis.

According to Jim Friedlich, the executive director and CEO of The Lenfest Institute, the partnership is the most extensive local news development collaborative focused on AI. "The scale, we think, is significant," Friedlich stated, expressing optimism about the potential outcomes of the initiative.

At the core of this initiative is the pivotal role of AI technology. The selected newsrooms plan to use this technology for various applications. Chicago Public Media aims to leverage AI for enhancing transcription, summarization, and translation, thereby broadening its audience reach. The Minnesota Star Tribune will focus on AI summarization and content discovery, assisting both journalists and readers. Similarly, Newsday is set to develop AI tools for public data summarization, which will assist both the newsroom and marketing services.

Meanwhile, The Philadelphia Inquiry intends to build a conversational search interface for accessing its archives more intuitively. The Seattle Times will explore deploying AI solutions to streamline sales analytics and improve advertising strategies, exemplifying the diverse approaches newsrooms are taking through this collaborative effort.

"While we believe nothing can replace the central role of reporters," Tom Rubin, chief of Intellectual Property and Content at OpenAI, remarked, "AI technology can assist significantly with research, investigation, distribution, and monetization of important journalism pieces." This sentiment reflects the broader vision of integrating AI responsibly and effectively within the traditional journalistic framework.

This initiative arrives at a challenging juncture for local journalism, which has been fraught with difficulties as ad revenues have declined over recent years. Many local news organizations have suffered from financial instability, prompting philanthropic endeavors to support tech integrations and operational enhancements. With this program, the initiative aims to rectify some of the pressing issues plaguing the local media environment.

Theresa Hutson, corporate VP of technology for fundamental rights at Microsoft, emphasized the importance of local journalism: "We need local journalism to inform and educate citizens, expose wrongdoing, and encourage civic engagement." Hutson portrayed the participating news agencies as potential lighthouses for other outlets, setting examples for broader industry practices.

Beyond the financial input, the project’s second component comprises software support and resources provided through Microsoft Azure and OpenAI. These credits will enable the media participants to experiment with technologies previously inaccessible due to budget constraints—essentially allowing them to develop and test AI-related investigative tools and products.

Initially incubated as a fellowship at the Lenfest Institute, the project has now expanded with Microsoft’s backing, amplifying its reach and potential impact. Alongside, it looks to unite several local newsrooms to share insights and best practices, potentially leading to innovations rapidly disseminated throughout the industry.

Despite the overwhelming potential for innovation, it's pertinent to mention historical tensions between tech companies and journalism. OpenAI and Microsoft have faced numerous legal challenges concerning the use of journalistic content without permission from various publications. Some lawsuits hinted at plagiarism concerns, with allegations against AI platforms for repurposing content derived from news articles. The legal backdrop remains complex, yet it serves as part of the broader discourse on the role of AI within the journalistic sphere. Notable publications like Condé Nast have sought agreements facilitating their content's use with AI services, setting precedents for future collaborations.

The recent granting of funds marks not just financial support, but also positions these local newsrooms at the frontier of AI experimentation, injecting new life and potentially redefining the local news narrative. Current plans include the exploration of multifaceted AI applications—ranging from developing tools to symbiotically complement original reporting to automative solutions enhancing the news delivery process.

This collaborative framework establishes clear channels for the sharing of recorded experiences, best practices, and technological advancements, prompting timely innovation and adaptations throughout local news outlets, as they navigate disruptions and redefine their roles.

OpenAI’s partnership with local media entities exemplifies the strong alignment between technology and journalism’s evolution. It seeks to pave the way for more sustainable practices amid turbulent conditions, addressing both the needs of local journalism and the demand for informative, community-focused content.”

With hopes pinned on this now-expanding initiative, the industry will be watching the outcomes closely, eager to see if this collaboration can offer viable, sustainable solutions to the longstanding challenges faced by local news.

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