Microsoft Compensates Publishers for Copilot Daily-Surfaced Content

Microsoft has introduced Copilot Daily, a new feature within its Copilot assistant, which will now include content sourced from publishers — and Microsoft will pay for it.

Copilot Daily, unveiled alongside other Copilot enhancements, offers users spoken summaries of the latest weather updates and current events. While similar to daily briefings provided by Alexa and Google Assistant, Microsoft highlights Copilot Daily as a solution to the issue of "information overload."

"Clean, simple, and easy to digest, Copilot Daily will only pull from authorized content sources," Microsoft noted in a blog post, adding that future updates will include customizable features and reminder options.

Major publishers like Reuters, Axel Springer, Hearst Magazines, and The Financial Times have signed on to provide content for Copilot Daily, which is initially launching in the U.S. and U.K. While Microsoft has declined to specify payment amounts or terms of these agreements, the company plans to bring more publishers on board and expand Copilot Daily to additional countries in the near future.

Microsoft has long paid publishers through content-licensing agreements on its MSN platform, but this is the first time such arrangements will cover the company’s AI-powered products.

AI Partnerships in the Age of Copyright and Data Concerns

Microsoft’s move comes amid growing scrutiny of how AI tools use and compensate publishers for their content. Other companies, such as OpenAI, Perplexity, and Apple, have introduced similar compensation models, partly to avoid legal challenges over copyright violations. These deals also provide valuable data for AI training, a market that could reach $30 billion within the next decade.

Recently, Perplexity began sharing advertising revenue with publishers when their articles are featured in its AI-powered search results. OpenAI has taken a similar approach, licensing content from major media companies like Condé Nast, Time, NewsCorp, Vox Media, and The Associated Press.

Criticism Surrounding AI-Publisher Deals

Despite the growing number of deals, some publishers and unions argue that the financial compensation doesn't reflect the true value of journalism. OpenAI's payments reportedly range from $1 million to $5 million annually at the lower end of the scale, and there have been complaints about poor execution — for instance, some links to partner articles in ChatGPT’s summaries didn’t work as intended.

Nevertheless, the news industry is eager for support in the face of significant challenges.

The sector could lose 10,000 jobs this year, according to Fast Company. While this represents an improvement from the over 21,400 journalism jobs lost in 2023, the outlook remains grim. Shrinking ad revenues, rising inflation affecting subscription rates, and changes in tech platforms’ algorithms have driven down traffic to news outlets.

Experts argue that consumers have grown accustomed to free content, with nearly half of U.S. residents getting their news via social media. Meanwhile, tech companies like Google and Meta have captured a growing share of global advertising dollars. A study estimates that broadcasters lose nearly $2 billion in ad revenue, about 60% of the global ad spend, annually to these platforms.

Looking Ahead: What This Means for the Future

By compensating publishers for content in Copilot Daily, Microsoft is setting a new standard for AI-driven news curation. This approach may offer a more sustainable way to balance innovation with the financial needs of content creators, while potentially encouraging other tech giants to adopt similar practices. As the landscape continues to evolve, this could be a pivotal moment in shaping the future of both AI tools and the news industry.