In a major move for digital publishing, People Inc. has struck an AI licensing deal with Microsoft, becoming one of the first launch partners in the tech giant’s new publisher content marketplace.

The People Inc. Microsoft AI licensing deal comes at a pivotal time for the company, which has seen significant drops in Google Search traffic following the rollout of Google’s AI Overviews feature.

Announced during parent company IAC’s third-quarter earnings, this new partnership signals a changing dynamic in how publishers are compensated for their content in the age of artificial intelligence.

Inside the People Inc. Microsoft AI Licensing Deal

Under the new People Inc. Microsoft AI licensing deal, Microsoft will pay publishers on a pay-per-use model, allowing AI developers to directly compensate content owners.

People Inc. CEO Neil Vogel explained that Microsoft’s Copilot will be the first buyer in the publisher marketplace. “It’s essentially a pay-per-use market where AI players compensate publishers for use of their content on an a la carte’ basis,” he said.

Vogel called the collaboration “a strong endorsement of our work and of high-quality publishing as the foundation of meaningful AI.”

This marks the company’s second major AI partnership, following its earlier deal with OpenAI, which operates on a different “all-you-can-eat” licensing model.

Google Traffic Drops Sharply

The People Inc. Microsoft AI licensing deal comes as the publisher faces a steep decline in traffic from Google Search.

Two years ago, Google accounted for 54% of People Inc.’s traffic. That number has now plunged to 24%, largely due to Google’s AI Overviews feature, which surfaces AI-generated summaries instead of linking directly to publisher content.

Vogel didn’t mince words when addressing the issue, describing Google as a “bad actor” in the AI ecosystem. He criticized the search giant for using the same web crawler for both Search and AI products, leaving publishers with no way to block AI data scraping without sacrificing search visibility.

Blocking AI Crawlers to Push for Fair Deals

In contrast, Vogel praised the company’s proactive use of Cloudflare’s web infrastructure to block AI crawlers from accessing its content — a move that forced AI companies to the negotiating table.

“Blocking AI crawlers has been very effective,” Vogel said. “It’s brought almost everyone to the table. We’re going to see more deals like this one.”

The People Inc. Microsoft AI licensing deal reflects a broader strategy to ensure that publishers are both respected and compensated in the new AI economy.

Financial Growth Despite Industry Shifts

Despite the challenges posed by Google’s AI integration, People Inc. continues to show steady growth. IAC reported a 9% increase in digital revenue, reaching $269 million for the quarter.

Performance marketing jumped 38%, while licensing revenue — buoyed by the new AI partnerships — rose 24%.

IAC also revealed its recent acquisition of Feedfeed, a food-focused publisher and influencer network, as part of its plan to expand its digital media portfolio.

Why the People Inc. Microsoft AI Licensing Deal Matters

The People Inc. Microsoft AI licensing deal represents more than just a revenue opportunity — it’s a precedent-setting moment for how AI companies engage with content creators.

As Vogel put it, “What matters most is that our work is respected and paid for.”

With both OpenAI and Microsoft now paying for access to People Inc.’s content, other AI firms may soon have to follow suit — potentially setting a new standard for ethical AI training and monetization.

The Bigger Picture: AI and the Future of Publishing

The People Inc. Microsoft AI licensing deal underscores a key shift in the balance of power between traditional media and tech platforms.

Publishers are no longer content to let AI companies freely use their material. Instead, they’re asserting ownership and demanding compensation — and Microsoft seems willing to play fair.

As AI continues to reshape the digital economy, this deal may signal the start of a new era: one where content isn’t just consumed by AI — it’s valued by it.

The People Inc. Microsoft AI licensing deal is a milestone moment for digital publishing. As Google traffic dips and AI companies rush to license high-quality content, People Inc. may have just shown the industry how to turn disruption into opportunity.