On its first-quarter earnings call, digital media company BuzzFeed revealed a significant drop in revenue and hinted that that is about to change in the near future.
According to the company's official press release, the medium's revenue fell 27% in the first quarter compared to 2022. Additionally, both advertising and content revenues were down at least 30%.
Buzzfeed founder and CEO Jonah Peretti said that to address these shortfalls, the company needs to "adapt," which includes incorporating artificial intelligence (AI). "By relying on creators and artificial intelligence, I believe we can unlock new opportunities across our portfolio of trusted brands."
The statement comes after BuzzFeed closed its news division and laid off 180 employees in late April. At the time, a BuzzFeed spokesperson said no jobs were being replaced by AI, though Peretti commented that AI would become "part of our core busin ess." While BuzzFeed says AI won't take over any jobs, the same cannot be said for other companies. In early May, the chief executive of technology company IMB said that some 7,800 jobs at the company could be replaced by artificial intelligence within a few years s.
On May 9, fast food restaurant Wendy's announced that it will trial an AI chatbot drive-thru operator called "FreshAI." The bot is said to reduce costs so funds can be allocated elsewhere.
Companies may see AI as improving cost efficiency by eliminating roles. However, according to an Accenture study, with the advancement of tools such as ChatGPT, 40% of working hours in various industries are at risk of being taken over by artificial intelligence.
