At the turn of the 20th century, the invention of the gasoline-powered tractor revolutionized farming. It’s said that one tractor could replace 25 horses, yet some farmers continued to use horses. Why not? They already had them. They were integrated into their workflow. I’m sure there were many discussions about how it was scary having those gas-powered things roaming the farm, and it was probably just a fad.
The first tractors probably weren’t perfect. They broke down, unlike the battle-tested horse. Yet those who persevered became exponentially more productive, profitable and efficient with their resources. Remember, you had to feed the horses and take up valuable land to grow the horse fuel.
Today, we’re seeing the same thing with AI in local media. 78% of organizations now use AI in at least one business function, up from 55% just one year ago. Just like those horse-keeping farmers, some local media companies are clinging to old ways while others are grabbing multiple tractors.
I used to be optimistic that the local media industry would immediately understand the benefits of AI adoption. I’m less bullish on mass adoption and more bullish on those who understand it will rapidly innovate and figure out the long-sought-after path to sustainability. Unfortunately, that will be at the expense of those left behind.
The great divide between AI-savvy publishers and everyone else
Two things are happening with AI platforms like ChatGPT, Claude, Perplexity and Gemini. They’re getting more powerful and easier to use. They’re integrating with other platforms and becoming the core of business infrastructure.
The separation is real, and it’s happening fast. Research shows local journalism faces “path dependencies that hinder innovation adoption,” while AI in media and entertainment is exploding from $15.11 billion in 2024 to a projected $195.7 billion by 2033.
Currently, I build AI frameworks — mega systems that prompt external tools. I’ve built a newsletter builder that identifies sources, aggregates stories, synthesizes summaries, fact-checks and outputs to HTML in about three minutes. I have fact-checkers, business intelligence builders, breaking news monitors and COPA (create once, publish anywhere) creators that output text, social, audio and video.
These AI-savvy companies will use frameworks, automation and AI agent tools like n8n to rapidly amplify their teams. They are the farmers who said if one tractor is good, three are better. These publishers are rapidly filling news deserts and buying up new markets because they can create more and better content at a fraction of the cost.
Why it matters to local media: The gap between AI-adopters and everyone else is widening daily. Publishers who embrace these tools now will have exponential advantages in content creation, audience engagement and operational efficiency. Those who wait will find themselves competing against organizations that can produce more content, faster and at a fraction of the cost.
The no-code revolution becomes real code
When I wrote about microSaaS being the savior of local media only three months ago, AI coding tools like Replit, Lovable and Cursor were just catching on. In a matter of months, these tools became VC darlings.
The numbers are staggering. Replit just raised $250 million at a $3 billion valuation, growing revenue from $2.8 million to $150 million in less than a year — that’s 50x growth. Lovable hit $75 million in annual recurring revenue in just seven months, despite having only 45 employees, and raised a $200 million Series A round at a $1.8 billion valuation. Why? They let both coders and non-techies build software. If you can imagine it, you can create it for 1/100th the price in 1/10th the time.
Over the past six months, I’ve experimented with Lovable, Bolt, Databutton, Greta and Roo Code. Publishers have shown me order management systems, self-service ad platforms and lead generation tools. Santa Monica Daily Press publisher Ross Furukawa demonstrated a tool that automates legal notice affidavits, saving hours of manual data entry.
These were tools built by publishers, not dev teams. Many cost $20/month; expense isn’t the constraint. These tools let you enter a natural language prompt and get actual software that you would have previously paid a developer $25,000 to $100,000 to build. You get the output in minutes, not months.
Why it matters to local media: Every operational problem you have — from ad management to subscription handling to content workflow — can now be solved with custom software that costs less than your monthly coffee budget. Publishers who master these tools will build competitive moats through proprietary systems that larger competitors can’t easily replicate.
AI-generated presenters push omnichannel distribution
For those around when desktop publishing was introduced — PageMaker, QuarkXPress — purists hated it because the kerning wasn’t perfect. What we found was that no one really cared about those details. They just wanted to read the news. Over time, we have accepted desktop-published materials as the new standard.
When AI-generated avatars were first introduced with Synthesia, HeyGen and Jogg.AI, they were good, but not great. When we first heard ElevenLabs’ voice cloning, we were thankful we weren’t voice actors. Over the past year, they’ve rapidly improved. The AI avatar market is projected to reach $5.93 billion by 2032, growing at a 33.1% compound annual growth rate.
We wanted the information, so form was less important. The authenticity of YouTube and TikTok creators gave us a new standard for “good enough.” Recently, I watched a YouTube video for five minutes before realizing the presenter had introduced themselves as a digital avatar.
Why it matters to local media: We can do text-to-voice and text-to-video news and content marketing for a fraction of traditional costs. We’re rapidly moving toward omnichannel publishing being a requirement, not a luxury. Local media companies will need to distribute in all media — text, voice and video. AI is the solution.
AI job displacement is real and coming as your new competition
AI job displacement is happening faster than anticipated. 14% of all workers have already been displaced by AI, with entry-level jobs especially at risk. 49% of Gen Z job seekers believe AI has reduced the value of their college education.
The first to go are entry-level workers and software coders. Next are the middle managers. Looming but slower will be “rules-based” professions like doctors, lawyers, engineers, architects and accountants. These won’t be eliminated; they’ll just need far fewer.
Why it matters to local media: These are incredibly smart and tech-savvy people looking for new opportunities. Smart people target industries that look antiquated and ripe for disruption but are valuable, honorable and mission-driven. That’s awesome if you want to sell. It’s bad if your new competitors will be very AI/tech savvy.
The new look of local business owners
Many AI job-displaced will become local business owners. They will need you. They will be significantly more sophisticated than previous generations — tech-savvy and data-driven. You and your sales teams will need to be, as well.
Why it matters to local media: The new breed of business owners will want data, need attribution and understand ROI. Who you hire will need to change. Your pitch and materials will need to change. In the past, local business owners were subject matter experts first, business owners second. The new breed will be business managers first, hiring subject matter experts.
The choice is clear: embrace the AI tractor revolution or risk being left behind like those farmers who stuck with their horses. The technology is here, it’s improving rapidly, and the winners are already pulling ahead. The question isn’t whether AI will transform local media, it’s whether you’ll be driving the tractor or watching it pass you by.
Guy Tasaka is a seasoned media professional with a 35-year track record of leading change in the industry. He has collaborated with renowned organizations such as Macworld Magazine, Ziff-Davis and The New York Times, where he honed his expertise in research, strategy, marketing and product management. As the former chief digital officer at Calkins Media, Guy was acknowledged as the Local Media Association's Innovator of the Year for his work in advancing OTT and digital video platforms for local news organizations. He is also the founder and managing partner of Tasaka Digital, specializing in helping media and technology companies navigate business transformations using his extensive experience and forward-thinking approach. Guy can be reached at guy@tasakadigital.com.
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