In its first quarter financial call, the digital media company BuzzFeed revealed major declines in revenue and hinted at upcoming changes for the near future.
According to an official press release from the company, the media outlet was 27% in its Q1 revenue compared to the same quarter last year. Additionally both advertising and content revenue declined by at least 30%.
Buzzfeed founder and CEO, Jonah Peretti said that in order to address these shortfall, the company will need to “adapt,” which will include integrating artificial intelligence (AI).
“By leaning into Creators and AI, I believe we can unlock new opportunities across our portfolio of trusted brands…”
The statement comes after BuzzFeed shut down its news division and laid off 180 staff towards the end of April. At the time a spokesperson from BuzzFeed said none of the jobs were being replaced by AI, though Peretti commented that AI would become “part of our core business.”
Cointelegraph reached out to BuzzFeed for further comment on integrating AI into its content strategy.
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Although BuzzFeed says AI is not taking over any jobs, other companies cannot say the same. Earlier in May, the CEO of technology firm IMB said that around 7,800 jobs at the company could be replaced by AI within years.
On May 9, the fast food restaurant Wendy’s announced it will be trialing an AI chatbot drive-thru operator it calls “FreshAI.” The bot is said to reduce costs so funds can be allocated elsewhere.
Companies may be seeing AI as a way to enhance cost efficiency by cutting back roles. However a study by Accenture revealed that 40% of working hours throughout various industries are at risk of AI takeover as tools like ChatGPT advance.
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Author: Savannah Fortis