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News Outlets Struggle as Google AI Impacts Traffic

Source: nypost.com

Published on June 11, 2025

Google AI Features Threaten News Outlets as Traffic Declines

Major news outlets are facing significant challenges as Google’s artificial intelligence (AI) features, such as AI Overviews and AI Mode, reduce website traffic. These AI-powered tools prioritize auto-generated summaries over traditional search links, leading to a sharp decline in visitors to news sites. The shift is raising concerns about the future of journalism and the economic stability of newsrooms.

Google’s AI Overviews feature, introduced in its search engine, provides users with concise summaries of information, bypassing the need to click through to news websites. This change has resulted in fewer direct links to news articles, impacting traffic and revenue for publishers. Last month, Google launched AI Mode, which uses chatbot-style conversations to answer search queries, further reducing the likelihood of users visiting news sites.

Impact on News Outlets

The decline in traffic is already affecting major news organizations. Business Insider, for instance, reported a 55% decrease in website traffic from April 2022 to April 2025, leading to a 21% staff reduction. Similarly, HuffPost and The Washington Post have experienced significant traffic losses, with the latter’s CEO describing the situation as a "serious threat to journalism."

"The rollout of AI-generated summaries instead of links is a serious threat to journalism that should not be underestimated," said the CEO of The Washington Post. "This shift could fundamentally alter how news is consumed and monetized.">

Google’s Perspective

Despite the concerns, Google maintains that it continues to direct substantial traffic to news sites. A Google spokesperson stated, "We send billions of clicks to websites daily, and connecting people to the web remains a priority. New experiences like AI Overviews and AI Mode enhance Search and expand the types of questions people can ask, creating new opportunities for content discovery.">

However, critics argue that these AI features are built on news content without proper credit or compensation. The News Media Alliance has accused Google of using news content to train its chatbots while reducing traffic to the original sources, labeling the practice as "theft.">

Antitrust Pressure

Google is also facing legal challenges, including antitrust cases brought by the U.S. Department of Justice (DOJ). These cases could lead to significant changes in the company’s business model. A U.S. District Judge is expected to decide by August on measures to address Google’s dominance in online search, with DOJ lawyers urging consideration of AI’s future impact.

In a separate case, Google was found to have monopolies over digital advertising technology. The ruling stated that Google’s "exclusionary conduct substantially harmed publisher customers, the competitive process, and consumers of information on the open web." The remedy phase of this trial will begin in September.

Future Implications

The ongoing shift towards AI-driven search experiences raises questions about the sustainability of traditional news models. As traffic and revenue decline, news outlets may need to adapt their strategies to survive in an AI-dominated landscape. The outcome of antitrust cases and industry responses will shape the future of journalism in the age of AI.