Artificial intelligence companies are under fire for allegedly scraping and summarizing content from published news articles without authorization. This practice, known as retrieval-augmented generation, has raised concerns among news publishers about the impact on their revenue and audience reach.

Large language models (LLMs) frequently cite news media as a primary source of current information. However, these AI systems often use news content without fair compensation, leading to a significant loss of traffic for publishers. As users remain within the confines of major tech platforms, they are less likely to visit news websites directly. This shift results in diminished advertising revenue and subscription sales for news organizations, as fewer clicks translate to less income.

AI companies are reportedly profiting from ads placed against copyrighted and often paywalled content. Critics argue that the summaries generated by AI can be misleading, containing inaccuracies and outdated information. A report highlighted that AI assistants struggle with basic factual accuracy and often fail to distinguish between opinion and fact. This can lead to responses that are not only incorrect but also lack essential context.

The reliance on AI-generated content poses a threat to the quality of journalism. If publishers cannot monetize their work, they may struggle to invest in the accurate reporting that informs the public and supports democratic engagement. Critics describe AI companies as "unlicensed news syndicators" that exploit the work of journalists while enriching themselves.

To address these issues, a potential Canada-European Union Digital Trade Agreement could establish guidelines for the ethical use of AI. Key recommendations include protecting intellectual property, ensuring fair compensation for publishers, and providing clear attribution for source content. Additionally, publishers should have the option to opt out of AI overviews without being removed from search engine results.

Negotiators are encouraged to consider the Global Principles for Artificial Intelligence, which emphasize the importance of respecting intellectual property rights and promoting transparent licensing models. These principles aim to balance the power dynamics between news publishers and dominant online platforms, ensuring that the rights of content creators are upheld.