Even though Google’s AI Overviews were introduced with a comically rocky start, it’s about to face a far more serious challenge. Penske Media, the publisher for Rolling Stone, Variety, Billboard and others, filed a lawsuit against Google, claiming the tech giant illegally powers its AI Overviews feature with content from its sites. Penske claimed in the lawsuit that the AI feature is also “siphoning and discouraging user traffic to PMC’s and other publishers’ websites,” adding that “the revenue generated by those visits will decline.”
The lawsuit, filed in Washington, DC’s federal district court, claims that about 20 percent of Google searches that link to one of Penske’s sites now have AI Overviews. The media company argued that this percentage will continue to increase and that its affiliate revenue through 2024 dropped by more than a third from its peak. Google spokesperson Jose Castaneda said that the tech giant will “defend against these meritless claims” and that “AI Overviews send traffic to a greater diversity of sites.”
Earlier this year, Google faced a similar lawsuit from Chegg, an educational tech company that’s known for textbook rentals. Like Penske Media, this lawsuit alleged that Google’s AI Overviews hurt website traffic and revenue for Chegg. However, the Penske lawsuit is the first time that Google has faced legal action from a major US publisher about its AI search capabilities.
Beyond Google’s legal troubles, other AI companies have also been facing their own court cases. In 2023, the New York Times sued OpenAI, claiming the AI company used published news articles to train its chatbots without offering compensation. More recently, Anthropic agreed to pay a $1.5 billion settlement in a class action lawsuit targeting its Claude chatbot’s use of copyrighted works.
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