Business
Prorata: The four things AI start-up needs to prove to publishers
Prorata’s chief business officer has set out four things the AI start-up needs to prove to publishers as it builds up to a wider launch of its products.
Prorata, which has received investment from Mail owner DMG Media and signed almost 100 publisher agreements, promises to share revenue split proportionally by the amount of each creator’s content used to create each AI-generated answer.
The start-up, which has a team of 80 people globally, has created an AI answer engine called Gist, just launched its first AI answer widget for a publisher, and is building an AI advertising tool to ensure it brings in the revenue it promises to split with creators.
Prorata will keep 50% of the revenue made from advertising alongside its AI answers and the remaining 50% will be shared proportionally among the publishers whose content is used to create the response.
Prorata’s 100 publisher agreements give it access to more than 500 titles to create what Jansen described as “arguably the largest database of licensed content used for gen AI answers”.
It uses that database to generate answers that can appear anywhere “within the trusted content world” of its publisher partners who integrate a Gist widget.
Chief business officer Annelies Jansen told Press Gazette one of the major principles Prorata needs to prove is that “AI engagement on a decentralised level is something that users want” and would use across publisher websites, adding that it’s “not a replacement of the search button in the top right corner”.
“This is about bringing new behaviour to existing users, but also using a network to drive users across a network of quality journalism, quality content.”
The second is that it can create that network effect benefiting all the publishers involved equally via its model of attributing where each part of an AI-generated answer came from.
“In, let’s say mid next year, I want to be able to have a series of use cases that say, on average, publishers who’ve integrated Gist.ai have been reporting plus double-digit growth of engagement on their own media channels. That’s my goal.”
The percentage of content from each publisher is displayed to users through an attribution bar, which Jansen hopes could become an industry standard because society is “owed that transparency”.
The third – which Jansen said “for some people would be number one” – is for Prorata’s AI ad unit to outperform existing ad units.
“Because our case study is plus 20% more engagement and plus 50% more CPC [cost per click], that is incremental to the industry.”
And finally, Jansen said, is the need to prove to publishers that Prorata is “very easy” to work with making it “the easiest onboarding journey they’ve ever experienced with a tech partner”.
She promised a partner portal “that will be a destination in its own right, where our partners will be able to see not just what is the value of my content, but how’s it being used? Where is it coming from?…
“One of our goals is that in the editorial room you’ll have a new line on your Chartbeat which says traffic from AI and the average revenue per answer is up week on week, because it needs to be embedded in the workflow, and it needs to be super easy.”
Other AI publisher deals ‘not a systematic approach to bringing fair value’
Prorata was founded by Bill Gross, who is widely credited for the “pay-per-click” model of search advertising. Gross, Jansen explained, was inspired by reading about The New York Times suing ChatGPT creator OpenAI for copyright infringement in December 2023.
“He thought: ‘This is weird. How is taking an LLM to court or trying to strike a deal going to build a sustainable business model for the whole industry, for all content creators?’” Jansen said.
She continued: “He thought: ‘Well, this is not going to help 99.9% of all people out there, because a deal actually requires you to bring in your legal team, and it’s not a systematic approach to how you bring fair value to the content used in a gen AI answer, and that’s where the idea for Prorata came from.
“The notion that you share revenue with the content creators is not new in the digital age. We see it in Spotify, we see it with Youtube or see it with Apple News, but in gen AI it’s just harder. It’s harder because you can’t count. And so we developed a system to count…
“We believe attribution is necessary to count contribution of original content in a gen AI answer. That’s why attribution is the foundation of our business, to be able to count it so you can share it. And I would say that, in that, we are different from deal makers.”
Publisher AI answer engines
Gist was built as an answer engine as a proof of concept to “prove to the market that attribution can work”, Jansen said, but a lot of the focus is now on building up the tech on publishers’ own sites.
Adweek launched its AI “companion” answer agent specifically for Cannes Lions in June which was able to draw on the publisher’s own news updates about the festival as well as lifestyle and travel content from the likes of Complex, The Skift and Atlas Obscura to help attendees make the most of their time in France.
Jansen said publishers can display the Gist widget in multiple ways, whether as an “ask me anything”, an article summarisation or related questions, and in various places on an article page.
Jansen said the idea is that people will stay on the sites longer with this interactive experience and that it can “keep them away from” the big tech platforms.
“If your experience in a media channel is not fulfilling, you often go to Google and now OpenAI or ChatGPT, Perplexity – can we, by providing a product to the industry to collaborate, not collaboration through negotiation, but collaboration through product solution, can we actually create an additional layer and network that lives between my own media channel and the big tech general environment?”
Traffic versus engagement question for publishers
But fewer people are going directly to publisher websites in the first place. The latest Reuters Institute Digital News Report found that less than a quarter (22%) of 18 to 24-year-olds globally said news websites and apps were their main source of news compared to 44% relying on social media and video networks. Among 25 to 34-year-olds the split was 26% newsbrands and 38% social media.
Jansen said in response that although Prorata is only working in text currently, they are building the tech to work in video and audio. The company has signed agreements with the likes of Sky and Universal Music Group.
Jansen also said the aim is the widgets will also bring incremental traffic gains for publishers, who could choose whether they want to prioritise traffic or engagement.
“For some publishers, they actually realise that there is so much incremental usage of their content in answers and the monetisation through the ad brings a significant revenue stream that they are less focused on the click through from the answers… for those publishers who have a subscription product, then that click through to their own channel is much more important.”
Asked about the potential disadvantage of users clicking sources in the answer widget, thereby leaving the publisher site, Jansen said the key will be for product people at both Prorata and the publisher to work together to find a “healthy medium”.
“What we see from our launch last week – related questions at the bottom of an answer, not surprisingly, are a really good way to keep people on site because they’ll spend more time on the site and every time they click on the related prompts, a new page opens up, a new opportunity to keep people inside. That’s also why it is so important that Gist.ai in terms of traffic count, lives within the publisher environment.”
Jansen said that AI answer engines are less satisfying for the user when it is based on only one publisher’s content because “in general, their questions are broader than what the publisher actually has to offer, even if you have an archive going back 150 years”.
Instead Prorata is trying to encourage publishers to be open to collaboration. Under the agreements they have been signing, a Gist answer widget on one publisher’s website can show content sourced from hundreds of other providers.
For this reason, publishers signing agreements with Prorata must meet its content quality standards so media companies do not unknowingly show untrustworthy information as a result of their mutual association.
“We are not afraid to publish an answer with contribution from other people in the ecosystem,” Jansen said. “As you can tell, I’m trying to avoid the word competitor because I think these publishers are not competing with each other anymore. They’re actually competing with big tech.”
She also said: “Every publisher on their own trying to solve for this will make it much tougher to turn the tide.”
Prorata had originally planned to charge subscriptions for its products which would have provided the revenue to be split between publishers.
But it changed strategy, Jansen said, upon thinking “why don’t we just go back to what publishers really understand, which is advertising”.
Prorata AI ad unit: Currently building supply and demand
Prorata is building an agentic AI ad unit that creates ads from material uploaded by advertisers and that also decides how and where the ads should show up alongside relevant content.
Jansen said this means the adverts are created “on the fly in real time, which is highly contextual, because it has the semantic understanding of both sides of the spectrum”.
These adverts will be able to appear on every Gist answer. They are undergoing a pilot in the US currently and will roll out in the US and UK in September. DMG Media, Time, Fortune, Lee Enterprises, Adweek and The Arena Group are also testing the ads on their own platforms.
In the meantime, Jansen said, they are working on building supply and demand – speaking to both publishers and advertisers at the recent Cannes Lions festival for example – so they can get over the “cold start problem” and create an ad business that “generates substantial money for publishers”.
Why Prorata says it signs agreements, not deals
Jansen opposes the use of the word “deals” in relation to Prorata’s agreements with publishers, saying “a deal’s a negotiation” whereas Prorata, which does not pay any money upfront but pins everything on the revenue share, has the same terms for all its partners.
Prorata was a partner at last month’s PPA Awards in London where it had a full-page advert in the programme stating: “They scrape and steal. We credit and compensate.”
Jansen said they have been deciding internally “how aggressive should we be in highlighting that your content is being stolen every day?… With the acceleration of the growth of users for LLMs, and no real solution yet, to stop that scraping without proper compensation we’ve actually become a little bit more outspoken, I would say, in our messaging.”
She added: “I think it is important to wake up or continue to let the industry know that if we don’t do anything, it’s not going to go away. This is not one where you think it’s going to be solved by the Government, or you think it’s going to be solved by the regulator, and I as a publisher could just continue to go on and do what I do.
“This needs to be solved by awareness and education on how you can actually participate in the incremental engagements. And so we make it easy to work with us, it’s for the benefit of the publishing ecosystem. We’re here to bring more money to the publishers.”
Despite her opposition to the deals, Jansen said they have actually helped foster an understanding on two key points.
She said they “create awareness for new user engagement tools, and also create realisation that the deals are only there for the happy few. The deals are not licensing deals. The deals are, get out of jail deals…”
Many publishers signing deals with the likes of OpenAI and Perplexity receive access to their AI tech to try out building their own products.
Jansen said building an AI website chatbot often appeared to be the easiest thing to do with those tech credits and claimed this showed publishers that using only their own body of content is “often not enough”.
“So we’ve seen examples of publishers with deals who have added content to their corpus, who have gone out and said ‘I want to license your content’ or simply… have added Wikipedia.”
Input versus output
Something else Jansen said is often misunderstood is that Prorata’s licensing and attribution system relates only to output – not input for AI training and scraping which is opposed, when done without permission, by most publishers.
“What is not helpful is that usually the two use cases, input and output, through journalists are being put into one problem to solve for. And I think that’s not helpful for the regulators. It’s not helpful for anybody that needs to make a decision in the industry.
“Because if you think it’s one problem, then you’re also looking for one solution. And if you’re able to decouple them and say, okay, there is one problem to solve for which is my content has been stolen and used for training, that’s an input problem, it’s stolen. How do I get value for whatever it’s stolen?”
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Business
‘Autofocus’ specs promise sharp vision, near or far
Technology Reporter
They look like an ordinary pair of glasses – but these are tech-packed specs.
On a Zoom call, Niko Eiden, chief executive and co-founder of Finnish eyewear firm IXI, holds up the frames with lenses containing liquid crystals, meaning their vision-correcting properties can change on the fly.
This one pair could correct the vision of someone who normally uses totally different pairs of glasses for seeing near or far.
“These liquid crystals… we can rotate them with an electrical field,” explains Mr Eiden.
“It’s totally, freely tuneable.” The position of those crystals affects the passage of light through the lenses. A built-in eye-tracker allows the glasses to respond to whatever correction the wearer needs at a given moment.
However, tech-laden eyewear has a troubled history – take Google’s ill-fated “Glass” smart glasses.
Consumer acceptability is key, acknowledges Mr Eiden. Most people don’t want to look like cyborgs: “We need to make our products actually look like existing eyewear.”
The market for eyewear tech is likely to grow.
Presbyopia, an age-related condition that makes it harder to focus on things close to you, is projected to become more common over time as the world’s population ages. And myopia, or short-sightedness, is also on the rise.
Spectacles have remained largely the same for decades. Bifocal lenses – in which a lens is split into two regions, usually for either near- or far-sightedness – require the wearer to direct their vision through the relevant region, depending on what they want to look at, in order to see clearly.
Varifocals do a similar job but the transitions are much smoother.
In contrast, auto-focus lenses promise to adjust part or all of the lens spontaneously, and even accommodate the wearer’s changing eyesight over time.
“The first lenses that we produced were horrible,” admits Mr Eiden, candidly.
Those early prototypes were “hazy”, he says, and with the lens quality noticeably poor at its edges.
But newer versions have proved promising in tests, says Mr Eiden. Participants in the company’s trials have been asked, for example, to read something on a page, then look at an object in the distance, to see whether the glasses respond smoothly to the transition.
Mr Eiden says that the eye tracking device within the spectacles cannot determine exactly what a wearer is looking at, though certain activities such as reading are in principle detectable because of the nature of eye movements associated with them.
Since such glasses respond so closely to the wearer’s eye behaviour, it’s important the frames fit well, says Emilia Helin, product director.
IXI’s frames are adjustable but not to a great degree, given the delicate electronics inside, she explains: “We have some flexibility but not full flexibility.” That’s why IXI hopes to ensure that the small range of frames it has designed would suit a wide variety of faces.
The small battery secreted inside IXI’s autofocus frames should last for two days, says Mr Eiden, adding that it’s possible to recharge the specs overnight while the wearer is asleep.
But he won’t be drawn on a launch date, which he intends to reveal later this year. As for cost, I ask whether £1,000 might be the sort of price tag he has in mind. He merely says, “I’m smiling when you say it but I won’t confirm.”
Autofocus lenses could help people who struggle with varifocals or bifocals, says Paramdeep Bilkhu, clinical adviser at the College of Optometrists.
However, he adds, “There is insufficient evidence to state whether they perform as well as traditional options and whether they can be used for safety critical tasks such as driving.”
Chi-Ho To, an optometry researcher, at the Hong Kong Polytechnic University has a similar concern – what if the vision correction went wrong or was delayed slightly while he was, say, performing surgery on someone?
“But I think in terms of general use having something that allows autofocusing is a good idea,” he adds.
Mr Eiden notes that the first version of his company’s lenses will not alter the entire lens area. “One can always glance over the dynamic area,” he says. If wholly self-adjusting lenses emerge then safety will become “a much more serious business”, he adds.
In 2013, UK firm Adlens released glasses that allowed wearers to manually change the optical power of the lenses via a small dial on the frames. These lenses contained a fluid-filled membrane, which when compressed in response to dial adjustments would alter its curvature.
Adlens’ current chief executive Rob Stevens says the specs sold for $1,250 (£920) in the US and were “well received by consumers” but not so much by opticians, which he says “strangled sales”.
Since then, technology has moved on and the concept of lenses that refocus themselves automatically, without manual interventions, has emerged.
Like IXI and other companies, Adlens is working on glasses that do this. However, Mr Stevens declines to confirm a launch date.
Joshua Silver, an Oxford University physicist, founded Adlens but no longer works for the company.
He came up with the idea of fluid-filled adjustable lenses back in 1985 and developed glasses that could be tuned to the wearer’s needs and then permanently set to that prescription.
Such lenses have enabled roughly 100,000 people in 20 countries to access vision correcting technology. Prof Silver is currently seeking investment for a venture called Vision, which would further rollout these glasses.
As for more expensive, electronics-filled auto-focus specs, he questions whether they will have broad appeal: “Wouldn’t [people] just go and buy reading glasses, which would more or less do the same thing for them?”
Other specs tech is even slowing down the progression of eye conditions such as myopia, beyond just correcting for them.
Prof To has developed glasses lenses that have a honeycomb-like ring in them. Light passing through the centre of the ring, focused as normal, reaches the wearer’s retina and allows them to see clearly.
However, light passing through the ring itself is defocused slightly meaning that the peripheral retina gets a slightly blurred image.
This appears to slow improper eyeball growth in children, which Prof To says cuts the rate of short-sightedness progression by 60%. Glasses with this technology are now in use in more than 30 countries, he adds.
British firm SightGlass has a slightly different approach – glasses that gently reduce the contrast of someone’s vision to similarly affect eye growth and myopia progression.
While autofocus glasses and other high-tech solutions may have promise, Prof To has an even bigger goal: glasses that don’t just slow down myopia but actually reverse it slightly – a tantalising prospect that could improve the vision of potentially billions of people.
“There is growing evidence that you can do it,” teases Prof To.
Business
Asia is reeling but is anyone winning?
Business reporter, BBC News
“Deeply regrettable” is how Japanese Prime Minister Shigeru Ishiba has described US President Donald Trump’s latest tariff threat – a 25% levy on Japanese goods.
Tokyo, a long-time US ally, has been trying hard to avoid exactly this. It has been seeking concessions for its beleaguered car makers, while resisting pressure to open its markets to American rice.
There have been many rounds of negotiations. Japan’s trade minister has visited Washington DC at least seven times since April, when Trump announced sweeping tariffs against friends and foes.
And yet, those trips seem to have borne little fruit. Trump’s label for Tokyo moved from “tough” to “spoiled” as talks dragged on.
And then this week, Japan joined a list of 22 nations that were sent tariff letters – 14 of those are in Asia. From South Korea to Sri Lanka, many are export-driven manufacturing hubs.
They have until 1 August to strike a deal with the US. But they are likely wondering about their chances given that Japan, a staunch ally that has been openly pursuing a deal, is still facing a steep levy.
Trump has reset the tariffs clock – again. So who is winning, and who is losing?
Winner: Negotiators who want more time
In one sense, almost all of the countries targeted by Trump earlier this year benefit from the deadline extension – they now have more than three weeks more to strike deals.
“The optimistic case is that there is pressure now to engage in further negotiations before the 1 August deadline,” said Suan Teck Kin, head of research at United Overseas Bank.
Growing economies like Thailand and Malaysia, which received tariff letters this week, will be especially eager to seek a solution. They are also caught in the middle of US-China tensions as Washington targets Chinese exports rerouted through third countries, what are known as transhipped goods.
Economists have told the BBC that further extensions are likely, given the complexity of trade agreements.
Countries will need time to implement Trump’s demands, which, going by the letters, are not entirely clear, said business lecturer Alex Capri from the National University of Singapore.
For instance, transhipped goods have been specifically levied as part of Vietnam’s trade deal with the US. But it is unclear whether that applies to finished goods, or to all imported components.
Either way, it will involve far more sophisticated technology to keep track of supply chains, Mr Capri said.
“It’s going to be a slow, long-term and evolving process involving many third parties, tech companies and logistic partners.”
Loser: Asian manufacturers
It seems clear that tariffs are here to stay, which makes global trade the loser.
Companies from the US, Europe and China with global businesses remain at risk, Mr Capri said. This hurts not just exporters, but also US importers and consumers.
And it is a blow for the economic ambitions of large parts of Asia, whose rise has been fuelled by manufacturing, from electronics to textiles.
It is unwise to make zero-sum observations on which countries are winning and losing, Mr Capri added, because international trade, especially between US and China is so deeply inter-linked.
Some countries, however, could lose more than others.
Vietnam was the first in Asia to strike a deal, but it has little leverage against Washington, and is now facing levies up to 40%. The same goes for Cambodia. A poor country heavily reliant on exports, it has been negotiating a deal as Trump threatens 35% tariffs.
South Korea and Japan, on the other hand, may be able to hold out longer, because they are richer and have stronger geo-political levers.
India, which too has leverage of its own, has not been issued a letter yet. A deal has seemed imminent but appears to be delayed by key sticking points, including access to the Indian agricultural market and the country’s import rules.
Loser: US-Japan alliance
“Despite its close economic and military relationship with the US, Japan is being treated the same as other Asian trade partners,” said economist Jesper Koll.
And that could transform the relationship, especially as Tokyo, with its large financial reserves, appears to be ready for the long game.
“Japan has proven to be a tough negotiator and I think that has annoyed Trump,” Mr Koll said.
Despite a rice shortage that has sent prices soaring, PM Ishiba has refused to buy US rice, choosing instead to protect domestic farmers. His government has also refused to give in to US demands to increase its military spending.
“They are well prepared,” Mr Koll argued. He said the day after Trump announced tariffs in April, Tokyo declared an economic emergency and set up hundreds of consultation centres to assist affected companies.
“Japan will be seeking a deal that is credible,” he said, because what’s the guarantee Trump won’t change his mind again?
With Japan’s upper-house election due this month, it would be surprising if a deal is agreed by August, Mr Koll said.
“No-one is happy. But is this something that is going to force a recession in Japan? No.”
Winner: US or China?
Asia has long been seen as a key battleground between Washington and Beijing, and analysts say, because of tariffs, Trump may be ceding ground.
For one, given how complex these deals can be, Trump may be overplaying his hand by extending the deadline again, according to some observers.
“The bargaining position of the US has actually been diminished as they have revealed that their hand isn’t actually as strong as they would like,” said NUS economics professor David Jacks.
And the deals that are made could come at the cost of reshaping trade and ties built over decades.
Trump’s choice of posting the letters online, rather than through traditional diplomatic channels, could backfire, said Mr Capri, who described it as “political theatre”.
The confusion caused is a “great gift” to China, which is trying to portray itself as a stable alternative to Trump’s unpredictability, he added.
But the US market is not easy to replace – and Beijing has its fair share of tensions with countries in this part of the world, from Vietnam to Japan.
China is in the middle of its own trade negotiations the US, although it has longer to strike a full agreement – until 13 August.
So who will win more friends in this trade war is hard to say, but the race is still on.
“Both parties see the need for a divorce,” Prof Jacks said, “but getting there will be tough and involve proceedings which will span years, if not decades.”
Business
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up job search business
Indeed and Glassdoor, the job search and employee review firms, are slashing a total of roughly 1,300 jobs as their parent company, Japan’s Recruit Holdings, embraces artificial intelligence.
In an email to employees Thursday, Recruit Holdings CEO Hisayuki “Deko” Idekoba said that “AI is changing the world” and that the company must adapt accordingly. The layoffs represent about 6% of Recruit Holdings’ workforce.
The cuts will target the companies’ research and development, as well as “people & sustainability,” teams in the U.S., but other areas and regions will also be affected, according to Recruit Holdings. The company will send notices to employees who are losing their jobs on Thursday.
The move reflects Recruit Holdings’ focus on using AI to transform how job-seekers look for work and how employers handle recruitment. As part of that effort, the company will fold Glassdoor operations into Indeed, the company told CBS MoneyWatch. Glassdoor CEO Christian Sutherland-Wong is stepping down.
“[W]hen we think about HR industry, which is $300 billion-plus industry, but it includes like 60% or 65% of human labor manual cost. It’s very difficult to find that big industry with such a high percentage of human labor manual cost,” Idekoba said in May at a JPMorgan Chase technology conference. “And so what we believe is, basically, how can we simplify hiring with using AI and technology and data to reduce manual work. That’s what we are focusing on.”
He added that about one-third of the company’s new programming code is written by AI, and that he expects that figure to jump to one-half. “It’s going to be 50% pretty soon,” he said.
The layoffs come as corporate leaders tout AI’s capabilities, while some experts warn that the technology could lead to job losses. Speaking in June at the the Aspen Ideas Festival, for example, Ford CEO Jim Farley said AI is likely to replace half of all white-collar workers in the U.S.
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