How AI is reshaping the content creator industry
Major tech companies have been rushing to develop their own AI models, dramatically altering the digital landscape. Goldman Sachs predicts that the content creator industry will reach half a trillion dollars by 2027.
The evolution of a new digital landscape can bring opportunities and challenges. Daron Acemoglu, an economics professor from MIT, has analyzed past industrial revolutions and highlighted that technological progress is not inherently beneficial; its impact depends on its direction and the institutions shaping it.
This article will:
- Explore the current state of the content creator industry.
- Highlight the consequences of large tech companies’ rushed use of AI.
- Examine the rise of AI-generated content spam and scams.
- Provide strategies for reassessing digital businesses in the AI era to achieve long-term sustainable growth through ethical AI practices.
Tech companies and their AI models
Historically, there has been a balanced cooperation between content creators and large tech companies like Google and Meta.
For example, creators would produce content for Google in exchange for visibility and traffic, which allowed authors to monetize it through ads and affiliate links.
The launch of ChatGPT ignited an innovation race, prompting Google, Meta and Microsoft to hastily release their own AI applications. These applications significantly transformed the digital landscape, though not always in everyone’s best interest.
Creativity and accuracy
These generative AI models have been trained on content created on the web by individuals, and the content generated by these machines re-elaborates someone else’s creativity and lacks any recognition or attribution.
In addition, those models are subject to hallucination due to “an inherent feature” of how these models are developed. They are trained on large datasets that can contain inaccuracy and cannot always distinguish between facts and sarcasm.
These models, like AI Overviews from Google and Meta AI, are slowly taking over the interaction between content creators and their audiences, creating a digital space that will soon lack innovation and genuine creativity.
Unfortunately, the news industry is not united in its response. While some authors and news media are fighting back with lawsuits against AI, others are establishing contract agreements for fair use of content.
AI-generated content spam and scams
Large companies are not the only ones using this new technology irresponsibly. Independent bad actors have been inundating the digital space with low-quality and misleading articles.
So much regurgitated material has been created to game the search algorithm that Google had to launch the core and spam updates to clean the web of useless information.
While intended to combat spam and improve search quality, Google’s algorithm updates have had unintended consequences for many website owners and publishers, mainly smaller and independent ones.
These updates have led to a significant drop in traffic for many websites, forcing some to lay off staff and face potential closure.
Your content is not useful
Some SEO experts blamed small creators’ unhelpful content for their devastating drop in traffic and revenue. Discussions were focused on improving content to recover the lost traffic.
However, after six months, no website has recovered.
Google’s algorithm favored its platforms, such as AI Overview answers (with no links back to small creators), websites with established brands and forums like Reddit and Quora, regardless of the quality of content.
Analysis has shown that the general drop in traffic to small independent sites was not caused by the unhelpfulness of their content but by an overall drop in click-through rates.
SparkToro’s 2024 Zero-Click Search Study found that:
- In the EU, out of every 1,000 Google searches, only 374 lead to clicks on websites outside of Google’s platforms.
- In the U.S., this number is 360.
- Almost 30% of all clicks go to Google-owned platforms like YouTube, Google Images, Google Maps, Google Flights, Google Hotels and the Google App Store.
It looks like we are moving toward an AI-generated web, where financial rewards and incentives for original content creation are fading away.
Financial market forces
Demand and supply shape a market’s economic development. AI has generated an oversupply of content, which has dropped demand and, therefore, financial reward.
Advertising networks have also been impacted by revenue reduction, and as a reaction, they are restricting the ability of AI-generated mass content sites to monetize with ads.
Mediavine and Raptives are perfecting their site approval system to identify and reject spam websites early on. They aim to protect and safeguard original content creators and promote their value-added.
However, the drop in traffic and ad revenue is still not deterring bad actors from spamming and scamming. They still make money by selling courses and books to the naïve public on “how to make easy money by mass-producing content with AI.”
Scammers are already finding ways to exploit Google’s new algorithm.
Multiple profiles are created in Quora to upvote their links artificially. Applications like ReplyGuy use AI to develop comments on Reddit that subtly promote specific products or websites.
Reassessing a digital business in the AI era
The rapid advancement of AI technologies is transforming the digital content creation landscape, necessitating a re-evaluation of traditional business models.
Large tech companies and digital content creators must adapt to these changes to stay competitive and sustainable.
However, as Acemoglu found in previous industrial revolutions, technology produces growth when invested to improve productivity, not to cut costs to automate production.
Shareholders vs. stakeholders
Instead of waiting for legislative regulations to shape and dictate the ethical use of AI, large tech companies should focus on the long-term interests of all stakeholders.
Their strategy should benefit society, including creators and users, instead of solely focusing on short-term returns to shareholders and top management compensation.
By prioritizing the open web in their decision-making, these companies can empower smaller voices and ensure a rich and engaging landscape of human-created content for users.
This approach promotes a more inclusive digital landscape and upholds the integrity and diversity of online information and creativity.
A new diverse digital creator business
By integrating AI ethically, content creators can enhance their performance, improve content quality and foster long-term growth.
Using AI for enhanced workflow and efficiency
AI can streamline many repetitive tasks, freeing up time for creators to focus on more strategic and creative activities.
By automating data analysis, research and content formatting, AI tools enhance workflow efficiency, allowing creators to produce high-quality content more quickly and consistently.
Leveraging AI for data-driven content strategies
AI’s capability to analyze audience data and engagement metrics enables creators to develop data-driven content strategies.
Identifying trending topics and popular content formats allows creators to tailor their content to meet audience preferences, resulting in greater reach and impact.
This approach ensures relevant and engaging content, fostering a deeper connection with the audience.
Ensuring AI applications prioritize user experience and authenticity
While AI can significantly enhance content production, it is crucial to prioritize user experience and authenticity.
Creators should use AI to augment their unique value propositions rather than replace human elements entirely.
By maintaining a focus on authenticity and genuine engagement, creators can build a trustworthy online presence that resonates with their audience.
Adapting content to different channels
AI can help creators repurpose content for different channels and their audiences.
Video content has been more resistant to changes. YouTube, Facebook, Instagram and TikTok are offering different ways to monetize content.
AI can help streamline video creation and retrieve several shorts and Reels from long videos. Creators can multiply their traffic sources, improve their brand awareness and grow their audience into real fans.
Ethical AI usage helps build trust and credibility with audiences. By ensuring that AI-generated content is used responsibly and transparently, creators can foster a positive reputation and establish themselves as reliable sources of information.
Unlocking sustainable growth in the content creator industry
The use of AI in the content creator industry is shaping a new form of digital reality. While everyone understands this new technology’s potential benefits, no one can predict the future.
To benefit society as a whole, large industry players like Google, Microsoft and Meta should shift their focus from optimizing short-term returns for shareholders to maximizing value for all stakeholders, including users, independent content creators and news outlets.
Independent content creators face significant challenges, including declining organic reach, evolving search engine algorithms and the rise of AI-generated content.
Looking for shortcuts and using AI to game the system can only bring uncertain short-term success and feed bad actors in their scam practices.
As a content creator, you will be more successful by adopting ethical AI practices and innovating responsibly to ensure a positive impact on your audience.
These efforts will build trust, foster sustainable audience growth and ensure long-term success in the dynamic digital landscape.