Cloudflare chief warns AI is redefining the internet’s business model

AI is inserting itself between companies and customers, Cloudflare CEO Matthew Prince warned in Toronto. More people ask chatbots before visiting sites, dulling brands’ impact. Even research teams lose revenue as investors lean on AI summaries.

Frontier models devour data, pushing firms to chase exclusive sources. Cloudflare lets publishers block unpaid crawlers to reclaim control and compensation. The bigger question, said Prince, is which business model will rule an AI-mediated internet.

Policy scrutiny focuses on platforms that blend search with AI collection. Prince urged governments to separate Google’s search access from AI crawling to level the field. Countries that enforce a split could attract publishers and researchers seeking predictable rules and payment.

Licensing deals with news outlets, Reddit, and others coexist with scraping disputes and copyright suits. Google says it follows robots.txt, yet testimony indicated AI Overviews can use content blocked by robots.txt for training. Vague norms risk eroding incentives to create high-quality online content.

A practical near-term playbook combines technical and regulatory steps. Publishers should meter or block AI crawlers that do not pay. Policymakers should require transparency, consent, and compensation for high-value datasets, guiding the shift to an AI-mediated web that still rewards creators.

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