Google Pays Publishers for AI-Generated Content as Web Traffic Drops

Google is testing a new system to compensate publishers for contributing to its AI search overviews. The pilot program, which has been running for a year, pays around 100 small to mid-sized websites based on how much their content helps construct AI answers and responses in the Gemini chatbot.

The payouts vary widely, with some sites earning over $1 million annually while others receive less than $1,000. Google's formula for determining material contributions is hidden from publishers, making it impossible to project future revenue or optimize content strategies.

Several large media outlets have refused to join the program, citing micro-payouts that don't make up for lost search traffic. Instead, they are lobbying for direct licensing deals like those made by OpenAI.

The industry is watching closely as governments begin to take notice of the issue. The UK government has ordered Google to provide publishers with an AI opt-out option, and the European Commission has opened an antitrust investigation into whether Google fairly compensates creators for AI usage.