Local media outlets embrace AI tools but lag in revenue and audience applications

Local media organizations have widely adopted artificial intelligence tools but have made limited progress integrating them into business processes that support revenue generation and audience growth, according to research released Nov. 12 by the Local Media Consortium (LMC).

The organization’s “AI Readiness & Digital Tech Stack Assessment,” conducted by Stellis AI, found that 97% of responding organizations used at least one AI assistant, while only 16% had incorporated AI into a repeatable business process. The study also found that 78% of priority work was still performed manually or not completed.

“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 reported a median AI readiness score of 32.5 out of 100, indicating that many organizations remained in the early stages of developing the processes and resources needed to expand AI implementation.

ChatGPT was the most widely used AI assistant among respondents at 76%, followed by Claude and Gemini at 59% each. However, researchers found little relationship between the number of AI tools an organization used and its level of workflow automation.

Among respondents who identified a primary performance metric, 80% selected audience growth or revenue generation as the outcome they most wanted AI to improve. Meanwhile, 46% of organizations identified “scattered efforts that don’t compound” as their biggest obstacle to AI adoption.

The study identified market intelligence, new revenue development and advertiser sales as areas with particularly limited automation. Those functions were performed manually or not completed at rates of 92%, 90% and 87%, respectively.

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Specific tasks with limited automation included personalized outreach to local businesses, identifying underserved audience segments, monitoring AI crawler access and content monetization terms, and identifying local businesses advertising with competing outlets.

Organizations with more than 100 employees reported higher AI readiness scores and nearly twice the level of automation in priority work compared with organizations employing fewer than 100 people.

“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.”

LMC planned to use the findings to inform future training, resources and partnerships through its Digital On-Demand Services (DODS) program. The organization was exploring additional collaborations with consultants, technology providers and fractional service organizations to help local media companies implement AI.

“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.”

The assessment surveyed LMC member companies between July 22 and Sept. 21, 2026. It was developed through the organization’s AI Accelerator program and implemented by Stellis AI, which provided the assessment framework and analysis.

The project received funding from the John S. and James L. Knight Foundation as part of the News Media Help Desk, an online resource developed by LMC and the Reynolds Journalism Institute to support strategic decision-making among local news organizations.

LMC represents more than 150 local media companies operating more than 5,000 newspaper, radio, television and digital-only news outlets across the United States, Canada and Puerto Rico.