Revitalizing Local News in the Era of Artificial Intelligence

As AI adoption grows in the local news sector, journalists and industry leaders continue to explore ways to use AI to serve their communities and where ethical lines should be drawn.
But AI is also bringing many negative changes, raising the need for public policies to ensure communities have access to high-quality news and information. Rebuild Local News’ focus is on how AI affects the economic sustainability of local news. We see several areas of concern:
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- Lack of fair compensation: AI models train on local news without compensating the news outlets that paid to produce the work.
- Drawing away audiences and undermining revenue models: AI agents and summaries that use and reproduce local journalism draw audiences away from the news outlets and journalists who produced the original work, undermining the ability for outlets to gain subscribers, donors or ad dollars.
- Information pollution: AI-powered entities frequently produce inaccurate or fabricated content, creating confusion about what’s real and what’s fake news. The effect will worsen if AI agents cause local news providers to stop producing original information.
- Inequitable bargaining power: Many larger media outlets have struck licensing deals or other commercial arrangements with AI companies, while small and midsized local news outlets – often the only news providers in their communities – have not.
Rebuild Local News President Steve Waldman Testifies Before The Senate Committee on Commerce, Science, and Transportation
On Feb. 10, 2026, Rebuild Local News President Steven Waldman urged Congress in his Senate testimony to adopt policies that increase the number of local reporters and ensure tech platforms compensate small and independent outlets.
Examining the Problems
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- Rebuild Local News | Local News Publishers, Unions and Advocacy Groups File Amicus Brief on AI Scraping
- Poynter | How AI could sap — or save — local news
- Rebuild Local News | AI Data Centers Are Being Built Where Local Journalists Aren’t
Proposed Solutions
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- Poynter | Want to build a data center? Fund the journalists who will hold it accountable
- Tech Policy Press | AI Data Centers Should Help Finance Independent Local Journalism
- Tech Policy Press | How to Solve AI’s Community News Problem
Recommended Reading
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- Fitch Ratings | U.S. Digital Advertising Pressured by AI Disruption, Web Traffic Decline
- Axios | Link economy breaks as AI reshapes web traffic
- Politico | ‘Pink Slime’ Is Infecting AI Chatbots Ahead of the Midterms
- Reuters | AI deepfakes blur reality in 2026 US midterm campaigns
- NewsGuard | AI False Information Rate Nearly Doubles in One Year
Rebuild Local News is hiring an AI and Tech Policy Manager to investigate problems like these and develop practical public policy responses aligned with the public interest.