Axios House: AI is the biggest threat to media — and the biggest buyer

CANNES, France — For years, media companies feared AI would make their content worthless. It turns out AI leads all others in needing that content, media and commerce leaders said at Axios House Cannes this week.

Why it matters: Publishers and creators spent years building content brands based on trust, which is exactly what AI companies require — and are willing to pay for.

• As search traffic remains key to advertising and affiliate revenue, some publishers want to block AI crawlers to protect their content, though.
• However, Neil Vogel, CEO of People Inc, pointed out, "we can't actually block Google," because it uses the same crawler for search and AI, which he called an "abuse of market power."

Axios' Sara Fischer and Kerry Flynn moderated discussions with Vogel; Clea Shearer, co-founder of The Home Edit; and Raina Penchansky, co-founder and CEO of Digital Brand Architects and co-head of United Talent Agency Creators. The June 23 event was sponsored by Mastercard.

Zoom out: Vogel described the two types of AI licensing deals in menu terms, saying People Inc. has "all-you-can-eat" deals with OpenAI and Meta, and an "à la carte" arrangement with Microsoft. Vogel expects each to renew.

• "Scarcity is key. AI needs three things: a model, power and inputs. We are the inputs," said Vogel.

Yes, but: Letting AI in the door cuts both ways. Shearer said The Home Edit uses AI for data and research but refuses to let it touch its content because "it doesn't replace personality [and] human connection."

• "I want to believe things are real… and I think that's what AI lacks in terms of actual content creation," Shearer said.

Between the lines: Vogel said the shift from digital to branded is the real story. People Inc.'s editors-in-chief no longer just pick stories, they define what a brand stands for across every platform.

• "In a world where things are increasingly fake and no one knows what's real, the value of the brand is going to increase," Vogel said. "That's what's happening."

What's next: Shearer bought The Home Edit back from private equity specifically to protect creative control, and said the lesson for any brand is the same.

• "It doesn't matter who owns it — I need the autonomy to operate the brand as I see fit," Shearer said.
• "When you're building the next brand, you want to be talking to someone who sees and understands cultural relevance and how to build from that place," Penchansky said.

Content from the sponsor's segment:

In a View from the Top conversation, Mastercard chief marketing and communications officer Jill Kramer said trust is the foundation of commerce, and AI is raising the stakes.

• "There's an accountability now for the level of knowledge you should have before you start marketing," Kramer said. "AI can be your best friend — but the real onus is on us to ask the next question."