Google's AI Overviews: Hurting Australian News Sites and Publisher Traffic?

Google’s AI Overviews: Reshaping News Access in Australia

Google’s AI-powered search features, particularly AI Overviews, are fundamentally altering how Australians access news. While these tools provide users with quick, AI-generated summaries, they are causing significant traffic declines for news websites, raising concerns about the financial stability of online publishers and the future of journalism.

Over the past year, Google has integrated AI Overviews into its search results in Australia, placing AI-generated answers above traditional links. This shift transforms Google from a search engine that indexes third-party content into an ‘answer engine’ that provides users with concise, AI-curated information. While convenient for users, this change is leading to fewer clicks on news articles, as readers increasingly rely on AI summaries instead of visiting the original sources.

The Impact on Australian News Sites

Australian news sites are experiencing traffic declines similar to those reported in the US and UK. According to data from SimilarWeb, some Australian publishers have seen traffic drops of up to 35% since the introduction of AI Overviews. This trend aligns with reports from other countries, where smaller publishers—who depend heavily on Google Search for visibility—have been particularly affected.

‘The shift to AI-generated summaries is reducing the incentive for users to click through to full articles,’ said Joanne Kuai, a researcher at RMIT. ‘This is especially true for evergreen content like how-to guides and recipes, which are easily summarized by AI.’ However, hard news articles, which are more complex and less easily condensed, may be less impacted.

Conflicting Data and Measurement Challenges

There is some debate over the extent of the traffic declines. Data from Ipsos Iris suggests that the combined readership of top Australian news sites has actually increased. However, this data contradicts reports from SimilarWeb and smaller publishers, who are experiencing significant drops in traffic. The discrepancy arises from the different methodologies used by these firms. Ipsos measures activity on thousands of devices and extrapolates the results, while SimilarWeb aggregates data from various sources, including internet service providers and browser plugins.

‘SimilarWeb’s data is likely more robust for assessing the industry-wide impact,’ said Laurence O’Toole, CEO of Authoritas. ‘Their approach provides a broader view of how users are interacting with news content across the web.’

Publisher Concerns and Legal Action

Publishers are increasingly concerned about Google’s use of their content to train AI models. The Independent Publishers Alliance (IPA) in the UK has filed complaints with competition regulators, accusing Google of using publishers’ content without fair compensation. In Australia, the Digital Publishers Alliance (DPA) is considering legal action to address similar concerns.

‘Google’s AI Overviews are built on the back of content created by publishers,’ said a spokesperson for the DPA. ‘It’s only fair that publishers are compensated for their work, especially if it’s being used to enhance Google’s products.’

The Future of Web Search

Google’s new ‘AI Mode’ search tool, which offers conversational interactions and fewer standard search results, could further reduce traffic to news sites. Critics warn that this shift could lead to platform monopolization and weaken the information ecosystem. ‘If users rely solely on AI-generated summaries, it could make societies more vulnerable to misinformation and authoritarian tendencies,’ said Dr. Kuai.

It remains unclear how Google will balance providing quick AI summaries with driving clicks to Google Ads, which are a key revenue source for the company. Some experts suggest that AI models may eventually be so well-trained that they no longer need content from news websites, potentially leading to licensing partnerships with select publishers.

Balancing User Needs and Publisher Revenue

As Google continues to evolve its search offerings, the company will need to find a way to balance the convenience of AI-generated answers with the financial needs of publishers. ‘There’s a delicate line here,’ said Kevin Indig, an SEO expert. ‘Users want quick answers, but publishers need traffic to survive. Google will need to find a sustainable model that works for both parties.’

For now, the future of news access in Australia remains uncertain. While AI Overviews offer users a more streamlined search experience, the long-term impact on publishers and the journalism industry is a growing concern.