Kölner Stadt-Anzeiger Medien Embraces AI for Comprehensive Operational Transformation

KStA Media Commits to AI-Driven Future

Kölner Stadt-Anzeiger Medien (KStA Media), a prominent German regional news publisher and part of the DuMont family, is embarking on a comprehensive integration of artificial intelligence (AI) across its entire operational spectrum. This strategic pivot, championed by CEO Thomas Schultz-Homberg, aims to establish the company as an AI-driven organization, enhancing efficiency and securing its long-term viability in a rapidly evolving media landscape. Schultz-Homberg stated during his keynote at the World Printers Summit in Munich that 'AI will influence not only your private life but also your business life in every aspect.'

AI Revolutionizes Logistics and Customer Service

The publisher is leveraging AI to streamline critical back-end functions. In logistics, KStA Media has partnered with Alphabots to automate complex processes. This collaboration has already yielded significant results, with the handling of delivery books achieving 97% automation, leading to cost savings and reduced errors.

Customer service is also undergoing a major transformation. KStA Media currently operates AI-supported call centers and plans for these to become 'AI-run' by the end of 2027, with the goal of eliminating traditional call center systems. The company is working with Novomind and its iAgent product to implement these changes. AI is designed to identify valuable 'gold' customers and suggest optimal resolutions, aiming for fully AI-driven customer service within 24 months.

Enhancing Editorial Processes with AI and Automation

AI is being extensively integrated into editorial workflows to improve content creation, curation, and reader engagement. KStA Media utilizes Natural Language Processing (NLP) and AI for understanding and curating texts and advertising on its digital platforms. Key applications include:

• Automated Topic Pages and Advertising Taxonomy: These are now fully automated, eliminating manual curation.
• AI Journalist 'Klara': An AI-based journalist named Klara contributes approximately 4% to 6% of articles for EXPRESS.de. Klara is viewed as an integral part of the editorial team, assisting in identifying trending topics and generating content.
• AI-Driven Recommendation System: KStA Media developed its own system, 'Man vs. machine – an AI approach to news publishing,' which has demonstrated an 80% increase in Click-Through-Rate (CTR) and a 13% rise in full article consumption compared to manual content curation.
• SEO Optimization: Through a partnership with iMatrics, AI automatically reads and categorizes articles to boost search engine optimization.

The company has also established an 'AI Circle' within the DuMont group to focus on specific AI projects. KStA Media has published clear editorial guidelines for AI usage, emphasizing that AI serves as a tool to enhance products and work, not to replace human journalistic expertise, with human oversight remaining paramount.

Strategic Shift Amidst Industry Challenges

This aggressive adoption of AI is part of KStA Media's broader strategy to adapt to the digital age and address challenges such as declining SEO traffic from search engine updates. The company, which ceased operating its own printing presses in October 2023, has shifted its print production to a third party, signaling a clear move towards becoming a 'digital tech company with journalistic content.' Schultz-Homberg stressed that publishers must integrate AI across all operations, stating, 'If you start AI in your company, you have to be ready to give up the culture you had for decades, maybe even longer.'