Artificial intelligence (AI) is transforming news delivery globally, but it’s leaving local journalism in Australia struggling to stay relevant. A new study from the University of Sydney highlights how Microsoft’s Copilot, an AI tool embedded in Windows, systematically prioritizes international news outlets, pushing Australian sources further into the background. The research raises serious concerns about the growing dominance of global media giants over local news providers.
Copilot’s Bias Toward International News
The study, conducted by Timothy Koskie from the Centre for AI, Trust and Governance, analyzed 434 AI-generated news summaries created by Copilot. Koskie found that the AI assistant predominantly linked to US-based media rather than Australian sources. Despite being set to an Australian location, Copilot often ignored local outlets, with only about one in five responses featuring links to Australian publications. Even more troubling, three out of the seven prompts tested did not include any Australian sources at all.
“Despite its operation on Australian systems, the majority of Copilot’s outputs favored US or European sources,” the report states, highlighting a glaring flaw in how AI news summarizers are functioning.
Local Journalism Erased
Another striking issue raised by the study is the way Copilot distills news without acknowledging the journalists behind the stories. Koskie observed that instead of naming reporters, the summaries often referred to sources as “experts” or “researchers,” effectively erasing the identities of the people who produced the original content. Furthermore, when Australian media did appear in Copilot’s summaries, the results heavily favored a few dominant players, leaving regional and independent outlets underrepresented.
This lack of recognition for local journalists and the focus on international content further diminishes the importance of local context in news reporting. In a country as vast and diverse as Australia, this is a major issue, as news summaries that fail to account for local perspectives can undermine the quality and relevance of the information shared with the public.
Copilot’s Unintended Impact on Australian Media
Koskie’s report points out that the AI-driven news generation system may be contributing to the decline in traffic to Australian news websites. By providing summaries that include hyperlinks to international sources, Copilot allows users to consume news without ever visiting the original news websites. This bypassing of local publishers creates a significant challenge for outlets that rely on website traffic for ad revenue.
This problem is not isolated to Microsoft’s Copilot. Other AI platforms, such as Google Search’s AI Overviews, have also been accused of reducing the visibility of original sources, further harming the already struggling local news industry. Koskie points out that AI-generated news summaries may seem like a convenient shortcut for users, but they ultimately deepen existing inequalities in the Australian media landscape, leaving local voices marginalized.
The Policy Gap: AI and Local Journalism in Australia
The research highlights a critical policy gap that threatens the future of local journalism. Australia’s News Media Bargaining Code, which forces tech giants to negotiate content deals with Australian news publishers, does not account for AI-driven news generation. As a result, platforms like Copilot continue to dominate the news landscape without contributing to the sustainability of local journalism.
Koskie argues that AI is undermining local media, and unless there are policy interventions, Australia risks losing its independent news voices, which are essential for a healthy democracy. The News Media Bargaining Code, which has been instrumental in forcing companies like Google and Facebook to pay for content, doesn’t currently address AI’s role in content distribution. Without updating this framework to include AI-driven platforms, Koskie warns that Australia could see its media ecosystem further consolidated by international giants, leaving local outlets with shrinking audiences and declining influence.
The Road Ahead for Local Journalism
The dominance of US and European sources in AI news summaries may not be an immediate crisis, but it signals a worrying trend for the future of Australian journalism. The research underscores the need for policy adjustments to address the role of AI in news consumption and distribution. Until then, local news outlets may continue to face the double whammy of declining readership and diminishing ad revenue, ultimately threatening the diversity of media voices in Australia.
Koskie’s study calls for greater transparency and accountability from AI companies, urging them to ensure that news summaries reflect a wider variety of perspectives—particularly local and regional news that serves specific communities. As AI continues to evolve and reshape the media landscape, it’s crucial that Australian policymakers and tech giants collaborate to create solutions that promote local journalism and maintain a vibrant, diverse media environment.
