Communications and Digital Select Committee publishes report on future of news and impact of AI

November 26, 2024

The House of Lords Communications and Digital Select Committee has published its report on the future of news.

It says that the risk of a “two tier” media environment in the UK is growing. The economics of mass market journalism are worsening, trust is low, and more people are actively avoiding mainstream reporting. News enthusiasts will remain well served. But more people will have limited engagement with professionally produced news, and the gap is widening.

These trends are being exacerbated by generative AI tools, which can create engaging news summaries and provide tech firms with unprecedented influence over the type of news users see.

The Committee points out that a changing news landscape should not be conflated with its imminent demise, and some media firms will do well in this emerging world. However, many will not. These dynamics compound the spiral of decline for areas that are already struggling. The report warns that a failure to tackle these issues could be “irreversible” and says that “there is a realistic possibility of the UK’s news environment fracturing irreparably along social, regional and economic lines within the next five to ten years. The implications for our society and democracy would be grim.”

The Committee notes that the news industry has defied the gloomiest predictions over the last 15 years: many audiences are better served than ever before, particularly by innovative online outlets. However, the outlook for some areas is concerning. Local news deserts have been growing, meaning many local communities have little local reporting. Overall trust is low, news avoidance is on the rise and a growing number of people are embracing dubious online sources. Drawing together the evidence from its inquiry, the Committee concludes that:

“The period of having informed citizens with a shared understanding of facts is not inevitable and may not endure.”

The report examines the appropriate extent of government intervention. It makes clear that some issues require urgent action (notably around AI, media plurality and copyright) but much of the work needs to be led by industry itself. In many cases well-meaning government interventions risk undermining media independence. The UK government should instead “establish the conditions that enable the sector to stand on its own feet and survive a protracted period of technological turbulence”.

The Committee also considered the “anchor” role played by the regulated broadcasting market, and the impact of new entrants. It finds that the system “will only thrive if there is healthy competition, a focus on serving all audiences and respect for the rules”.

The Committee’s main recommendations include:

  • Support local media:  This could include tax breaks for hiring local reporters, journalist training schemes and expanded Local Democracy Reporting Service.
  • Champion responsible AI: The Committee criticises “tepid” previous efforts to resolve copyright disputes and calls for updated legislation to help news providers strike mutually beneficial deals with AI firms. This should include transparency measures to let rightsholders check if their material has been used to train AI, alongside new sanctions for rule-breaking.
  • Take competition seriously: The Competition and Markets Authority should investigate allegations of anti-competitive practices by big tech firms. Ofcom’s rules on media plurality should be updated to take account of AI firms’ growing influence in creating news through generative AI summaries.
  • Remain proportionate on mis/disinformation: Measures to tackle disinformation should not undermine confidence in free speech or fuel public distrust. The Committee cautions against overreliance on technical fixes such as watermarks, and encourages more effort on long-term societal resilience and more muscular deterrence against foreign adversaries.