Mandy Girder, who has joined the firm as an Audit Partner and Media Lead, said:

The opportunities and risks associated with generative AI are significant, as well as the need to deliver on Environmental Social Governance (ESG) promises or they could damage both profits and reputation.

A major risk is that generative AI could generate factually inaccurate content, this could not only damage the reputation of the media outlet publishing it, but also investors or other users of that information could be making the wrong business decisions. This level of error could have significant reputational, financial and potentially legal implications for the media outlet, where content is copied from other outlets, opening the door to a copyright lawsuit.

Businesses in the media industry need to ensure that they communicate transparently on both their goals and progress on ESG, this will ensure they manage consumers expectations. However, disclosures in their financial statements regarding ESG initiatives need to align with their actual performance, any differences could lead to potential legal challenges and mistrust. ESG is often part of Merger and Acquisition (M&A) contracts, so any violation of these promises could be costly both financially and reputationally.

However, there is an opportunity for differentiation. Media brands that deliver on their ESG promises and transparently report on the positive changes they are making using generative AI can gain a competitive edge.

Mandy said:

I have over 15 years of experience in audit, and previously I worked at RSM UK Audit LLP. My role at Blick Rothenberg as an Audit Partner and Head of Media is to continue to grow the firm’s clients in the media sector which includes television production, publishers, video gaming and agencies.

If you have any questions about the issues raised please get it touch with your usual Blick Rothenberg contact or Mandy using the form below.