Google is actively engaging with around 20 national news outlets to establish a new AI licensing pilot aimed at improving its relationship with the media industry, which has been strained due to concerns over content use.

Unlike competitors such as Perplexity and OpenAI, which already pay publishers for content, Google's recent licensing deals have primarily involved the Associated Press and Reddit, signaling a shift towards formal agreements.

This move comes amid ongoing legal disputes and industry debates over the use of copyrighted content for AI training, with many publishers taking legal action against companies for unauthorized use.

Industry initiatives like Cloudflare's 'pay per crawl' program highlight a growing demand for fair compensation for content used by AI services, reflecting a broader industry shift.

These licensing efforts are partly a response to criticism from news organizations and regulatory bodies, including EU antitrust complaints and UK publishers seeking opt-out options from AI-generated summaries.

Media outlets are exploring new revenue models, such as Google's AI Overviews and Offerwall, to counter declining ad revenues and digital competition, with some publishers earning millions through licensing agreements.

However, many publishers remain concerned that AI-generated summaries and tools are reducing traffic to their websites, which could threaten their traditional revenue streams.

Legal battles, such as The New York Times' lawsuit against OpenAI over copyright infringement, underscore the ongoing tensions and uncertainties surrounding AI's use of copyrighted content.

The legal landscape remains unclear, with courts and the U.S. Copyright Office debating fair use and copyright protections in the context of AI training, complicating licensing negotiations.

Despite these challenges, the industry is moving toward formal licensing arrangements, which could reshape how publishers monetize their content and influence the future of online news.

Google's declining share of the global search market and the rise of AI tools have prompted the company to seek better relations with publishers to support its AI initiatives and ensure sustainable content access.

If successful, these licensing deals could set a precedent for future collaborations between tech giants and news organizations, potentially creating new revenue streams and influencing market dynamics.