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CNET’s Publisher Having Trouble Selling It Due to AI Scandal

Jan 17, 2024 - futurism.com
Red Ventures, the parent company of CNET, is reportedly struggling to find a buyer for the technology site, with the AI scandal being a significant deterrent. In January 2023, CNET was found to be publishing AI-generated articles under a misleading byline, with many of these articles containing errors and plagiarism. This led to large layoffs and the unionization of CNET staff, who cited AI as a major concern. Despite being profitable, CNET's declining traffic and brand reputation issues, particularly due to the AI controversy, have made it difficult for Red Ventures to recoup even half of the $500 million it paid for the site in 2020.

The AI scandal has had a significant impact on CNET's brand reputation, which was once a respected beacon of tech reporting. Red Ventures' use of CNET's name to transform into an SEO-focused entity has further damaged the site's reputation among readers and employees. The situation mirrors that of Sports Illustrated, which also faced a similar AI scandal. The hope is that a new owner could invest in CNET's journalism and restore its reputation, while also treating its employees fairly.

Key takeaways:

  • Red Ventures, the parent company of CNET, is struggling to find a buyer for the technology site, partly due to a scandal involving AI-generated articles.
  • CNET had been publishing AI-generated articles under a dubious byline, which led to errors, plagiarism, and insufficient disclosure, damaging the brand's reputation.
  • Following the AI scandal, CNET staff unionized, citing concerns about job security and the impact of automated technology on their roles.
  • Despite being profitable, CNET's sale is hindered by a slower ad market, rising interest rates, and brand reputation issues stemming from the AI scandal.
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