Retrenchments at Media24 not a result of AI, says Goldstuck

The retrenchments at Media24 are unrelated to the media’s embrace of artificial intelligence (AI) but are related to the industry’s failure to adapt to a changing ecosystem.

This is according to Arthur Goldstuck, who was addressing media at the Huawei ICT Editors Xchange conference in Johannesburg on Thursday.

Goldstuck said the plan to retrench about 410 employees by Media24, which sent shock waves throughout the sector, related to the media’s “change management battles that went back several decades”.

Changing news consumption patterns influenced by advancements in technology have led to gradual erosion of the sector’s operations, he said.

Goldstuck spoke about the fear of automation and AI, saying there were examples that showed AI was able to improve efficiencies, stimulate demand and thus create new jobs. The media should embrace AI but use it ethically.

Aluwani Chokoe, a deputy director of the ICT Youth Council, said the government’s decision to introduce coding and robotics as part of the curriculum was a good idea but progress should be communicated publicly.

“This is a positive step [that will ensure employability of young people].”

She expressed disappointment about the absence of government, saying there should be tax incentives for those creating jobs for young people in technology.

Media24 CEO Ishmet Davidson confirmed recently the media group could retrench about 410 employees after a decision to discontinue the print publications of City Press, Rapport, Daily Sun and Beeld within three months.

Davidson said print media globally had been suffering structural declines in circulation and advertising for decades. Combined with rising fixed distribution costs, this had a devastating effect on print operations.

“As a result, our titles in the northern region have been on life support for a while. Combined losses are projected to amount to R200m over the next three years,” Davidson said.

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