Digital media company BuzzFeed has announced that it has seen significant declines in its first quarter financial revenues and that they will turn to artificial intelligence in the near future.
The company, which recently announced that it was closing its news section and laying off 180 employees, announced that it was turning to artificial intelligence (AI) technology. According to an official press release from the company, the media outlet’s first-quarter revenue decreased by 27 percent compared to 2022. In addition, both advertising and content revenues declined by at least 30 percent.
Peretti: Artificial Intelligence Can Unlock New Opportunities
BuzzFeed founder and CEO Jonah Peretti said the company will need to adapt to artificial intelligence technology to address the shortcomings.
Peretti continued in his statement: “I believe we can unlock new opportunities in our portfolio of trusted brands by turning to creators and artificial intelligence.” At the time the company made the layoffs, a spokesperson said that none of the layoffs would be replaced by artificial intelligence, but Peretti stated that AI technology would become a part of their core business.
While BuzzFeed says its AI technology isn’t taking over any business, other companies disagree. Earlier in May, the CEO of technology company IBM said that about 7,800 jobs in the company could be replaced by this technology over the years.
Companies may view AI as increasing cost efficiency by reducing roles. However, a study by Accenture revealed that as tools like ChatGPT evolve, 40 percent of working hours in various industries are at risk of being hijacked by this technology.
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