Decidr

The prolific rise of social media over the past 15 years has brought both profound opportunities and significant challenges to journalism and traditional publishing. We'd even go so far as to describe it as a digital double edged sword that has had no problem slicing both ways.

AI is similarly poised to transform the landscape for SMEs, offering comparable potential AND risks.

But perhaps by learning from the past we can harness those benefits while mitigating the drawbacks, ensuring a more equitable and symbiotic business landscape where both can peacefully coexist.

The impact of social media on journalism

Social media platforms such as X (formerly Twitter) revolutionised and democratised access to journalism.

Non-journalists could share information, and report and share perspectives (as well as hot takes). It also allowed for real time reporting, dramatically reducing the amount of time between news breaking and it being in front of eyeballs.

While there's something to be said about the simultaneous rise of fake news and unverified reports thanks to social media, it did also help bring stories to the forefront that may have otherwise been overlooked by traditional media.

This has continued into 2024, with platforms such as TikTok now acting as a prominent source of news reporting, and as a source for news by the media. It has also enabled rapid information sharing during times of crisis such as the Ukraine War and assault on Gaza.

Despite the benefits of broader coverage, the shift from traditional publishers to big tech companies like Google and Meta has undermined the financial stability of quality news organisations.

The impacts of this were particularly obvious with media companies that pivoted their audience strategy to rely on social media companies. They were now at the mercy of social algorithms they could not control. In short, their business model was reliant on someone else’s business.

But beyond this, the impact has been felt across the board. A 2019 report by the Australian Competition and Consumer Commission (ACCC) found that the number of journalists in Australia fell by 20 percent between 2002 and 2018, largely due to a decrease in advertising revenue to digital platforms.

Recent developments have shown the ongoing impact of these shifts.

While policies such as Australia’s Media Bargaining Code aimed to address this imbalance by requiring tech giants like Meta to pay for news content, it’s become a war between the government and social media companies.

As a response, in late June Meta threatened to simply block news content across its platforms, including Facebook and Instagram.

This happened on the same day that Nine Entertainment announced plans to cut up to 200 jobs, with 90 jobs lost from its publishing division and 38 from its news and current affairs team.

The publishing giant pointed towards a weak advertising market, as well as the likely end to its publishing deal with Meta as the key reasons for the cuts.

It’s no wonder that traditional media publications are feeling the financial strain.

Social media algorithms have prioritised sensational and emotionally charged content, increasing bias and polarisation in news consumption. It's also contributed to (but is not solely responsible for) a modern environment where nobody actually wants to pay for quality news.

Democratising access to advanced tools

Just as social media democratised news – with world shaking effects – generative AI can democratise access to advanced business tools for SMEs.

AI solutions that were once only accessible (and affordable) for large enterprises are now within reach for smaller businesses. Consider the playing field officially levelled.

This shift allows SMEs to harness AI for operational efficiency, customer engagement and strategic decision making.

We've seen this in New Zealand’s cloud based accounting startup Xero, who uses AI to automate tasks such as invoice processing and expense management. This not only saves time but also reduces errors, making it easier for SMEs to manage their finances.

In the fintech space, Airwallex has built out its AI offering to streamline cross-border payments for small businesses, allowing them to compete more effectively on a global scale.

Lastly, Hubspot offers SMEs advanced marketing automation tools, allowing them to optimise customer engagement and compete with larger corporations.

Learning from the past

Equitable access to AI is imperative to prevent a repeat of the pitfalls experienced by the media industry.

Considering we’re at a point where policies, initiatives and regulations are still in their relative infancy, they should focus on making AI tools affordable and accessible to SMEs, ensuring they can compete on a level playing field with larger enterprises.

This is particularly important in Australia where SMEs are the backbone of the economy, with 97% of all businesses across the country having less than 20 employees.

Fortunately, we've seen some positive steps from the federal government.

The Artificial Intelligence Adopt Program will see $17 million to establish five centres across the country with the goal of helping businesses safely integrate AI into their workplaces.

The latest federal budget also saw $39.9 million set aside for the safe and responsible adoption of AI.

And this is important because quality over quantity should be the message with AI from the top down.

While governments prioritise the responsible use of AI, SMEs should also look at adopting quality AI solutions that provide meaningful insights and drive real business value.

The use of AI by companies like Canva exemplifies how the right AI tools can enhance user experience and drive business success in an accessible and affordable way. Not only is Canva using AI, but the giant is also offering it en masse to its users through its Magic Studio platform.

Just last month the business also rebranded its website for the first time in almost a decade, gearing more towards business use.

Of course, it’s also important for SMEs to adopt transparent AI practices in order to build trust with its customers, employees and other stakeholders. Businesses must ensure that AI tools are fair, unbiased and ethical.

Similarly, initiatives like the The intersection of Responsible AI and ESG: A Framework for Investors, from the CSIRO help investors ensure they're approaching AI in a credible way.

Considering how fast this technology is moving, SMEs also need to be open to continuous learning and a willingness to pivot.

Investing in ongoing education and staying up to date with AI advancements ensures businesses remain competitive, innovative and – if we’re to draw on the journalism comparison one last time – able to actually survive.