Thinktank Calls for 'Nutrition Labels' on AI-Generated News and Fair Payment to Publishers
IPPR Demands AI News Labels and Publisher Payments

Thinktank Proposes 'Nutrition Labels' for AI-Generated News Content

The Institute for Public Policy Research (IPPR), a prominent left-of-centre thinktank, has issued a compelling call for the implementation of standardised "nutrition" labels on all AI-generated news. This innovative proposal aims to provide transparency by clearly indicating the sources of information used to create AI responses, including peer-reviewed studies and articles from professional news organisations.

Addressing the Rise of AI as Information Gatekeepers

With artificial intelligence rapidly emerging as the new gatekeepers of internet information, the IPPR argues that urgent intervention is necessary to cultivate a healthy AI news environment. The thinktank's comprehensive report highlights that approximately a quarter of people now use AI tools to access information, with Google's AI overviews alone reaching an astonishing 2 billion users monthly according to Reuters Institute data.

The IPPR emphasises that if AI companies are going to profit from journalism and significantly influence public perception, they must be required to pay fairly for the news content they utilise. Roa Powell, senior research fellow at IPPR and co-author of the report, stated that clear operational rules are essential to protect plurality, trust, and the long-term future of independent journalism.

Licensing Framework and Regulatory Action

The thinktank recommends establishing a robust licensing regime within the United Kingdom that would empower publishers to negotiate directly with technology companies regarding the use of their content in AI-generated news. This framework could potentially begin with the UK's competition regulator utilising its enhanced enforcement powers over major tech firms like Google.

Interestingly, the Competition and Markets Authority has recently proposed measures that would grant web publishers and news organisations greater control to prevent Google from scraping their content for AI overviews. The IPPR suggests that collective licensing agreements would ensure comprehensive inclusion of diverse publishers across the media landscape.

Research Findings on AI News Sources

The IPPR conducted extensive testing of four prominent AI tools—ChatGPT, Google AI overviews, Google Gemini, and Perplexity—by submitting 100 news-related queries and analysing more than 2,500 links generated by the AI responses. The research revealed significant disparities in how different AI platforms source their information.

ChatGPT and Gemini notably did not cite journalism from the BBC, which has implemented blocks against the bots these platforms use to assemble answers. Conversely, Google overviews and Perplexity continued to utilise BBC content despite the broadcaster's explicit objections to their tools employing its journalism.

The study found that established publications like the Telegraph, GB News, the Sun, and the Daily Mail appeared in fewer than 4% of ChatGPT's responses. Meanwhile, the Guardian—which maintains a licensing agreement with ChatGPT's parent company OpenAI—served as a source in nearly six out of every ten responses. The Financial Times, another publication with an OpenAI licensing deal, similarly featured prominently in AI-generated answers.

Economic Implications for News Publishers

Google's implementation of AI summaries at the top of search results has created substantial challenges for publishers, significantly affecting click-through traffic with consequent revenue implications. Many users now read the AI overview without proceeding to the original journalism, creating a concerning knock-on effect for publisher sustainability.

The IPPR raises important questions about how financial relationships between AI companies and news providers might shape the answers generated by artificial intelligence systems. There exists a genuine risk that licensed publications could appear more prominently in AI responses, potentially locking out smaller and local news providers who are less likely to secure lucrative AI deals.

Beyond Licensing: Supporting Sustainable Journalism

While licensing agreements could partially replace lost advertising revenues, the IPPR cautions that they alone cannot maintain a healthy news ecosystem. The thinktank warns that such deals might create dangerous dependencies, making news organisations increasingly reliant on tech giants for revenue—income that could vanish rapidly if copyright protections were weakened.

The report advocates for substantial public funding to develop innovative business models for investigative journalism and local news, whose sustainability faces genuine threats from the rise of AI-generated content. Additionally, the IPPR recommends government support for the BBC to "innovate with AI" while encouraging new business models that reduce dependency on the technology sector.

With appropriate policies in place, the government could effectively shape this evolving market, enabling UK news organisations to transition their business models for the AI era while encouraging AI companies to enhance product reliability through trusted journalistic sources.