People Inc. Licenses AI Content

People Inc. has entered into an AI licensing agreement with Microsoft, becoming a launch partner in Microsoft's publisher content marketplace. This agreement will see People Inc.'s media content used as premium input for AI products like Copilot. The deal adopts a 'pay-per-use' model, compensating publishers for individual uses of their material, a shift from previous 'all you can eat' arrangements.

The partnership aims to provide more accurate, cited answers in Copilot while creating a new revenue stream for publishers. This is particularly relevant as People Inc. has experienced a decline in Google Search traffic, dropping from 54% to 24% due to Google's AI Overviews. Microsoft's strategy involves securing vetted, rights-cleared content to improve accuracy and limit legal risks.

For People Inc., this deal is both a defensive move against search headwinds and an opportunistic step into the new licensing model for the AI era. The agreement signifies a move towards recognising the ongoing value of content in AI products, ensuring fair compensation for publishers.