News in brief: Brands Look to Change Agency Remuneration Models; OpenAI Considers Advertising; OpenAI Sued by Canadian Media 

Brands Look to Change Agency Remuneration Models

Three quarters of multinational brands are looking to change their agency remuneration model within the next three years, reveals a study by the World Federation of Advertisers and MediaSense. The study cites a tremendous desire for change due to factors such as better equipped clients and the increasing use of AI and automation. In response, advertisers are leaning further towards implementing output or outcome-based pricing, as opposed to pricing based on the number of hours spent producing work. Specifically, 58% plan to increase their share. An overwhelming number of respondents (84%) also agreed that lack of data and measurement between advertiser and agency to measure outcomes was a major barrier. 

OpenAI Considers Advertising

Elsewhere in the ad tech ecosystem, OpenAI is finally considering plans to introduce advertising to its products including ChatGPT. Sarah Friar, the company’s chief financial officer, told the Financial Times that they were weighing up an ads model. She added that they intended to be “thoughtful” about where ads would be implemented. However, Friar stated that these plans are not yet “active”, as they still see significant opportunities within their existing business model. 

OpenAI Sued by Canadian Media

While OpenAI explores potential plans for the future, they continue facing significant opposition from the publisher world. A group of Canadian media companies have filed a lawsuit against the AI giant for – you guessed it – copyright infringement. The media companies include Toronto Star Newspapers Limited, Canadian Press Enterprises Inc, and the Canadian Broadcasting Corporation. They allege that OpenAI infringed their copyrights by scraping content from their websites to train AI models without seeking permission or offering compensation.