Artificial intelligence has been celebrated for accelerating knowledge creation and improving information access. Yet new research reveals a more complex;and potentially hazardous reality. While AI and digital platforms increase the efficiency of processing and distributing information, they simultaneously undermine the economic foundations that sustain high-quality journalism, fact-based research, and the broader information ecosystem. Their dominance reduces incentives for truthful content creation, amplifies misinformation, and risks triggering a long-term “information collapse.” This article distills key insights from Stiglitz & Ventura-Bolet’s work on the evolving information ecosystem and examines why leaders, policymakers, and knowledge-intensive organizations must respond strategically to prevent a degradation of public knowledge.
The Paradox of AI-Driven Knowledge
AI promises unprecedented gains in discovery, analysis, and dissemination. It can solve complex problems in seconds, synthesize vast datasets, and accelerate learning on a global scale. Yet—as the research warns—the very technologies designed to enhance knowledge may dilute the quality of the information people rely on. The paradox is striking: faster information flows reduce the value of producing new, accurate content, weakening incentives for the journalists, researchers, and institutions that supply trustworthy information. The result is an ecosystem where efficiency rises, but information quality may deteriorate.
Platforms That Disrupt What They Depend On
Digital platforms and AI systems absorb and redistribute information created by others—often without attribution or compensation. This “attention capture” model shifts audience traffic away from original producers, eroding the business models that finance investigative reporting, scientific analysis, and fact-checking. As the research highlights, AI puts these pressures “on steroids.” By synthesizing information without clear sourcing, AI further reduces the visibility and revenue streams of legacy media and expert producers, creating a marketplace where truth becomes expensive and misinformation becomes cheap.
A System at Risk of Information Collapse
Perhaps the most striking insight of the research is the possibility of an “information collapse.” As AI and platforms capture more consumer attention, the share of resources flowing back to information producers declines. Meanwhile, misinformation becomes cheaper to generate and harder for consumers to detect. If these trends continue, society may reach a tipping point where too little truthful information is produced to sustain informed decision-making. The collapse does not require futuristic transformative AI—it can occur simply because today’s AI systems are “good enough” to intermediate information while remaining imperfect, hallucinating, or lacking accountability. Preventing this outcome requires rethinking regulation, incentives, and the economic architecture of the information ecosystem.
Conclusion
AI and digital platforms may accelerate information processing, but they also weaken the economic and institutional foundations that sustain truthful content. As misinformation becomes cheaper to produce and harder for consumers to detect, the overall quality of the information ecosystem is at risk of steady deterioration. Without updated regulatory frameworks and stronger accountability, society could face an “information collapse” in which truthful knowledge becomes increasingly scarce. The future of our information environment will depend on whether we can realign incentives to preserve and reward the production of high-quality information.
References:
Joseph E. Stiglitz. Others. "The Impact of AI and Digital Platforms on the Information Ecosystem". NBER. 2025 (Accessed Nov 2025, Link)
Editor: BUILD IT: Research & Publishing Team
