Leveraging AI Critical for Sustainable Media Business Models, Says Expert
With challenges like audience fragmentation and competition from free content, Schantin stressed that incremental cost-cutting is not a sustainable strategy.
NAIROBI, Kenya - In a rapidly evolving digital landscape, leveraging artificial intelligence (AI) is critical for media companies seeking sustainable business models, said digital strategy expert Dietmar Schantin, writes Winston Mwale.
Speaking at the closing session of the AllAfrica Media Leaders Summit on Friday, Schantin outlined a comprehensive strategy for digital transformation dominated by AI.
He emphasized taking a holistic view with a structured approach to tackle the challenges, ensuring every aspect of operations is aligned - from customer-centric approaches to modern journalistic practices, digital newsrooms, company culture and team skills.
According to Schantin, the founder of media consultancy IFMS Media, the key areas media houses need to focus on include understanding audiences and markets, revamping content and storytelling, enhancing user experience and product, utilizing data effectively, streamlining workflows, upskilling employees, adopting the right technologies and infrastructure, exploring new monetization avenues, and fostering an innovative company culture.
Crucially, he stressed harnessing AI's capabilities in areas like content personalization, audience analytics and operational efficiency while being mindful of its limitations around transparency, biases and intellectual property concerns.
Schantin noted that GenAI tools like ChatGPT have immense potential for automated writing, multimedia creation and information synthesis, but must be carefully implemented as language tools first before graduating to riskier knowledge tool applications.
He cited examples of how media pioneers like Norway's Bergens Tidende and Sweden's Dagens Nyheter are using AI and data to better understand audience needs, streamline digital production and drive subscription growth.
With challenges like audience fragmentation and competition from free content, Schantin stressed that incremental cost-cutting is not a sustainable strategy.
Rather, media companies must invest in comprehensive digital transformation powered by responsible AI deployment.
Schantin told the summit audience of top African media executives that the media future belongs to those who can masterfully blend journalism with technology and put the audience at the center.
Sustainably harnessing AI is key to that successful transformation, he said.