Local media widely adopts AI, but major revenue and audience opportunities remain untapped, LMC study finds

This research shows that many organizations have moved beyond initial experimentation with AI tools, but there remains significant opportunity to integrate AI into core business processes that support audience growth, revenue generation and operational efficiency.”

Fran Wills, CEO, Local Media Consortium

NEW YORK — Local media organizations have rapidly embraced artificial intelligence tools, but significant opportunities remain to apply AI to the audience growth and revenue-generating activities most critical to long-term sustainability, according to new research released today by the Local Media Consortium (LMC). 

Findings from the organization's AI Readiness & Digital Tech Stack Assessment, conducted by Stellis AI, show that 97% of responding organizations use at least one AI assistant, yet only 16% have incorporated AI into a repeatable business process. At the same time, 78% of priority work is still completed manually or not at all. The findings suggest the industry's challenge is no longer whether to adopt AI tools, but how to turn experimentation into measurable business results. 

“The conversation in local media has shifted from whether organizations should explore AI to how they can implement it in ways that deliver meaningful results for long-term sustainability,” said Fran Wills, CEO of the Local Media Consortium. “This research shows that many organizations have moved beyond initial experimentation with AI tools, but there remains significant opportunity to integrate AI into core business processes that support audience growth, revenue generation and operational efficiency.”

The assessment found a median AI readiness score of 32.5 out of 100, indicating that many local media organizations remain in the early stages of building the structures needed to scale AI adoption. 

Key findings

• 97% of responding organizations use at least one AI assistant. Top three AI tools used by local media companies include ChatGPT (76%), Claude (59%) and Gemini (59%).
• Only 16% have embedded AI into a repeatable business process.
• 78% of priority work is still performed manually or not done at all.
• 80% of respondents naming a metric said audience growth or revenue generation is the primary outcome they most want AI to improve.
• The median AI readiness score was 32.5 out of 100. 
• 46% cited "scattered efforts that don't compound" as their biggest obstacle to AI adoption.
• Market intelligence (92%), new revenue development (90%) and advertiser sales (87%) were the business functions most likely to be completed manually or not done at all. 
• Tasks most often done by hand include:
• Drafting personalized outreach to local businesses (37% manual or not done, 6% automated) 
• Identifying underserved local audience segments and unmet information needs (37% manual or not done, 3% automated)
• Monitoring and managing AI crawler access and content monetization terms (31% manual or not done, 6% automated)
• Spotting local businesses advertising elsewhere but not with us (31% manual or not done, 6% automated).

Researchers found little relationship between the number of AI tools an organization uses and its level of automation. Instead, local media organizations with stronger AI readiness were significantly more likely to report successful adoption and greater workflow automation.

The assessment also revealed a readiness gap between larger and smaller organizations. Organizations with more than 100 employees reported higher readiness scores and nearly twice the level of automation in priority work compared with organizations employing fewer than 100 people, suggesting that capacity and resources remain important factors in successful AI adoption in small and midsized community newsrooms across the country.

“Across industries, the most successful AI adopters are using it to drive growth, not just reduce costs, and local media leaders are clearly focused on that same outcome,” said Trent Gillespie, CEO of Stellis AI. “The challenge isn't access to new tools. It's building the organizational readiness to turn experimentation into consistent business results.”

From insight to action

The findings are expected to inform future training, resources and strategic partnerships through LMC's Digital On-Demand Services (DODS) program. As publishers move from experimentation to implementation, LMC is exploring expanded collaborations with consultants, technology providers and fractional service organizations that can help local media companies put AI to work and accelerate transformation efforts — efficiently and affordably.

"This initiative is about more than understanding where publishers are today," said Liz Hayes, program manager for DODS. "We're identifying what publishers need next and building the support network to help them move forward, connecting them with trusted experts who can turn AI potential into measurable business results."

About the assessment:

The AI Readiness & Digital Tech Stack Assessment was developed through LMC's AI Accelerator program to help local media organizations evaluate AI readiness, identify implementation opportunities and prioritize future investments. The survey of LMC member companies was conducted between July 22 and September 21, 2026. Participating organizations receive customized insights and recommendations to support planning and adoption efforts. The assessment was implemented by Stellis AI, which provided the assessment framework and analysis for participating organizations and industry-wide findings. The project is supported through funding from the John S. and James L. Knight Foundation as part of the News Media Help Desk, an online resource created by the LMC and The Reynolds Journalism Institute that guides newsrooms toward strategic decisions that ensure the long-term future of local media.

About the Local Media Consortium:

The Local Media Consortium delivers more than $60 million in annual economic value through digital partnerships and strategic initiatives on behalf of more than 150 local media companies in top markets across the United States, Canada and Puerto Rico, and includes more than 5,000 newspaper, radio, TV and online-only news outlets. By harnessing the combined volume and scale of its members, the LMC reduces costs and increases revenue with technology and service providers. The aggregated LMC audience footprint spans 200 million unique monthly visitors, and its member companies serve more than nine billion pageviews to consumers. More information is available at LocalMediaConsortium.com.