Credit: Rohan Solankurkar via Unsplash
The avalanche of content created by AI hasn’t really changed the position of premium content, it just means more work to differentiate.
The tools from AI help drive more volume of “good enough” content but consumers aren’t fooled, according to a study by management consultants Bain & Co.
“The flood is real. As AI tools become more prevalent, creators have been publishing faster and more often, driving down the cost of ‘good enough’ content,” Kuba Tymula, expert partner in Innovation & Design practices, Bain & Co, told AdNews.
“The upside though, is that independent creators can get a genuine productivity boost from AI, enabling them to focus more on originality and audience engagement than mechanics of content production.
“Bain's research is clear - consumers won’t accept fully AI-generated content, and the human touch is essential in building content that feels authentic and cuts through.
“For incumbents, efficiency matters a lot, but it shouldn’t come at the expense of the craft. The real opportunity is to apply AI in non-creative areas like distribution, analytics, and operational support, while keeping the writer’s room, newsroom, and studio focused on creativity that differentiates.
“In Australia, proven IP and trusted brands already hold an edge in a crowded and highly concentrated landscape. For mastheads, broadcasters, and production houses, that trust is an asset in itself.
“Human-created content can be a point of distinction and advantage – something to signal, reinforce and turn into long term value, while responsibly using licensed AI assistance to support creators.”
Bain argues that despite the revolutionary changes wrought by new tools, such as AI, a lot hasn’t changed in media and entertainment since (probably) the printing press.
Success still requires producing great content at a competitive cost, effectively engaging audiences so they consume that content, and monetising that engagement.
Bain says none of those success factors will be diminished in the industry’s new “Flooded Era”.
But how media and entertainment companies achieve them needs a rethink.
“AI will accelerate a change we’re already seeing from democratised media platforms: There’s more content coming from more places, and both media and tech companies are vying to be the gatekeeper,” says Bain.
Bain says using AI makes it cheap and fast to create that previously needed a room of staff.
“But it makes terrible, janky, soulless stuff.,” the creatives in the room shout.
Human creatives are needed to guide AI but challenges remain.
Around 60% of consumer creators told Bain that they would use AI to create content types they haven’t previously produced, which means the unending river of uploaded user-generated content (UGC) will become an ocean.
“Most of it will get few views, listens, or reads; it’s just going to make it harder for consumers to find what they like, forcing algorithms to adapt,” Bain says.
“However, a sliver of the flood will include undiscovered creatives making ‘good enough’ content for which they previously lacked the tools. That sliver will compete with traditional media for consumers’ time, even if the rest doesn’t.
“The improvement in output per unit of cost from using AI will augment what smaller, independent studios, labels, and publishers can do, providing a meaningful boost to their craft training and expertise.
“ They’ll be able to create premium content at a fraction of the cost, making indies competitive in segments they’ve never touched before.”
Incumbent major studios, labels and publishers must find efficiency gains to remain competitive, says Bain.
“They can accomplish this with many back-end processes—for instance, our video clients are already using AI insights to inform distribution choices—without affecting core creative differentiation (i.e., your scriptwriters have a process; don’t mess it up.)
“Given the raised standards of indies, major media companies will need to make their content and experiences even more premium.
“Using new tech tools, such as virtual production in films or AI to expand massive gaming worlds, can enable them to innovate and push creative boundaries.”
People are reluctant to consume fully AI-generated content but they do have some appetite when it expands creative possibility, the Bain survey found.
“Incorporating new tools will require meaningful operational change for traditional media companies, and that isn’t easy without clear strategic direction and cultural commitment. But they’ve adapted to new tech before—these are, after all, the creative industry giants,” says Bain.
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