Why AI is breaking internet’s news business model

Media companies expect online search traffic to their websites to fall dramatically over the next three years as AI-powered summaries and chatbots change how audiences access information, according to a new report from the Reuters Institute for the Study of Journalism.

The report, based on responses from 280 media leaders across 51 countries, found executives anticipate a 43% decline in search engine referrals over the next three years. Search traffic to news sites has already dropped by around a third globally in the past year, driven by the rapid rise of AI overviews, chatbots and changes to search algorithms that have long underpinned digital publishing, The Guardian writes. 

Data from analytics firm Chartbeat, covering more than 2,500 news websites, shows Google search referrals are down 33% worldwide, with even steeper falls in the United States. Lifestyle, celebrity and travel content has been hardest hit, while live reporting and current affairs journalism has so far proved more resilient, as it is less easily summarised by AI tools.

Google’s AI Overviews now appear at the top of roughly 10% of US search results and are expanding to other markets. Although referrals from ChatGPT are increasing, the report describes them as “little more than a rounding error” for most publishers.

Nic Newman, senior research associate at the Reuters Institute, said the long-standing “traffic era” of online publishing was drawing to a close.

“It is not clear what comes next,” he said. “Publishers fear that AI chatbots are creating a new, convenient way of accessing information that could leave news brands – and journalists – out in the cold.”

He added that reliable reporting, expert analysis and distinctive viewpoints remain vital, particularly during uncertain times.

“Great storytelling and a human touch are going to be hard for AI to replicate,” he said.

As fewer readers click through from search results, many media companies are shifting away from a traffic-driven model and focusing more on subscriptions and direct relationships with audiences.

The report also highlights a growing push into platforms such as YouTube and TikTok, as short-form video and audio continue to expand. Around three-quarters of media executives said they plan to encourage journalists to behave more like content creators in 2026, while half expect to partner with creators to help distribute their work.

Governments are also adapting to the changing media landscape. In the UK, Downing Street has increasingly engaged social media influencers as Prime Minister Keir Starmer seeks to reach younger audiences and bypass traditional outlets.

Influencers including campaigner Anna Whitehouse, known as Mother Pukka, and personal finance creators Cameron Smith and Abi Foster have recently been given access to senior ministers.

By Sabina Mammadli