After scraping content for AI training and wrecking publications with HCU, Google now says news is worthless to ad revenue

Google’s relationship with news publishers has always been rocky, but recent moves have pushed tensions to a breaking point. The tech giant stands accused of scraping news content to train its AI models without paying a dime, while its algorithm tweaks have left small publications reeling. Now, Google has dropped a bombshell, claiming news is basically worthless to its ad revenue. This latest twist, drawn from an experiment in the EU, has publishers up in arms (as they should be), insisting their work is vital to Google’s sprawling digital empire.

For years, Google and other tech heavyweights like OpenAI and Meta have tapped into news articles to fuel their AI systems. Research from Ziff Davis shows these models lean hard on top-notch journalism, yet the creators see no paycheck. The issue’s so heated that The New York Times took OpenAI and Microsoft to court over copyright violations. Publishers say this free-for-all threatens their survival, draining the resources they need to keep producing quality work.

Then, there’s also Google’s Helpful Content Update, or HCU, which launched in 2022 and tweaked in 2023. The goal was noble — boost content made for people, not just search rankings. But the fallout hit hard. Small publishers and niche bloggers watched their traffic tank as Google’s algorithm sidelined their stuff. Many saw revenue dry up overnight, blaming the update for punishing specialized content that didn’t fit the new mold. It’s another sore spot in an already strained standoff.

The latest chapter unfolded with Google’s report from an EU test. They cut news from Search, Discover, and Google News for a slice of users across eight countries. The result? No real dent in ad revenue, Google says. They argue news doesn’t drive their bottom line, a claim that’s raised eyebrows. I found a Swiss study pegging news content’s worth to Google at $440 million a year in that market alone. That report also found users like seeing news in search results, hinting it keeps them hooked longer.

Here’s a screenshot of the report’s summary:

Adding fuel to the fire, the EU’s Copyright Directive has forced Google to pay up. The company inked deals with over 300 publishers across Europe, bowing to legal pressure after dodging fair talks got them slapped with fines. It’s a stark contrast to their “news is worthless” line, showing even Google can’t fully deny its value.

The clash leaves big questions hanging. If publishers don’t get a fair shake, quality journalism could fade, and that might erode the rich info pool Google’s users rely on. As someone who’s dedicated over 5 years of my time publishing news related to tech, I’ve been miffed with Google for a while, and this shady report from the company isn’t helping me rethink my stance.

What are your thoughts on Google’s report? Let us know in the comments below.