(MENAFN) In a pioneering move within the United States, Google has reached a groundbreaking agreement with California lawmakers to channel millions of dollars into local newsrooms. This initiative represents the first of its kind in the country and is part of a broader, global trend aimed at compelling technology companies to financially support newspapers that rely on their platforms for news dissemination. The deal, however, comes with a contentious new element: a portion of the funding is earmarked for the development of artificial intelligence (AI) technology, a decision that has sparked considerable concern among journalists and some Democratic lawmakers. They fear that AI could potentially supplant human journalists, further complicating an already strained relationship between tech giants and the journalism industry.

The details of the agreement, initially disclosed by Politico, reveal that Google and the state of California have committed to a five-year collaborative fund aimed at bolstering local journalism. This initiative will be administered through the "News Transformation Fund," a program managed by the UCLA School of Journalism. Under the terms of the deal, Google will allocate USD110 million towards various journalism initiatives, while the state of California will contribute an additional USD70 million. State Assemblywoman Buffy Weeks, a Democrat from Oakland who played a key role in negotiating the agreement, confirmed these financial commitments. Notably, the deal also includes a provision for directing USD70 million of private funding towards the development of AI tools, a component that was not part of the original legislation and was introduced as a means to secure greater buy-in from the tech industry.

While the bulk of the funding is intended to support local newsrooms across California, the inclusion of AI development in the agreement has drawn mixed reactions. Weeks emphasized that the AI component was a relatively small part of the overall negotiations. The newly established nonprofit organization, referred to as the "National AI Accelerator," aims to address challenges across various industries, including journalism. Among the potential AI-driven solutions is the enhancement of tools like the CalMatters digital democracy program, which leverages AI to monitor government legislation. Despite the controversy surrounding the AI aspect, the overarching goal remains to provide substantial support to struggling local newsrooms while exploring the potential benefits of AI in various fields.

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