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BuzzFeed Turns to AI As Q1 Revenue Drops By 27%

Key Takeaways
  • BuzzFeed's Q1 revenue dropped 27%, prompting the company to focus on AI and Creators for new opportunities
  • Wendy's is trialing an AI chatbot drive-thru operator called "FreshAI" to reduce costs
  • While AI adoption can enhance cost efficiency, concerns about job displacement and workforce inequality persist
10 May 2023 By: Simran Mishra
BuzzFeed Turns to AI

BuzzFeed leans into Creators and AI to unlock new opportunities amidst revenue decline

BuzzFeed, the digital media company, has reported a decline of 27% in Q1 revenue compared to the same period in 2022. Both advertising and content revenue also dropped by at least 30%. In response to this, BuzzFeed's CEO, Jonah Peretti, has revealed that the company is "leaning into Creators and AI" to unlock new opportunities across its portfolio of trusted brands. Peretti has stated that integrating AI into its content strategy will be a part of the company's core business going forward.

Although BuzzFeed maintains that AI is not replacing any jobs at the company, there are concerns that this may not be the case in other industries. For example, earlier in May, IBM's CEO said that around 7,800 jobs at the company could be replaced by AI within a few years.

Meanwhile, fast-food restaurant Wendy's has announced that it is trialing an AI chatbot drive-thru operator called "FreshAI." This move is expected to reduce costs, freeing up funds for other areas of the business. However, there are concerns that the increasing use of AI across various industries could lead to job displacement, as Accenture's study suggests that 40% of working hours are at risk of being taken over by AI.

As companies continue to integrate AI into their operations, there are growing concerns about the impact on the workforce. While AI can enhance cost efficiency, cutting back on roles, there are fears that this could lead to a loss of jobs and further exacerbate existing inequalities in the workforce.

Overall, BuzzFeed's move to integrate AI into its content strategy is part of a wider trend in various industries. However, the impact of this technology on the workforce and the broader economy is still uncertain, and policymakers and businesses alike will need to carefully consider the implications of AI adoption.

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