Nobel Prize-winning economist and former World Bank Chief Economist Joseph Stiglitz returned to Taiwan for the first time in 35 years, warning that the rapid development of artificial intelligence(AI) is exacerbating misinformation and information distortion. In an exclusive interview with Storm Media, he argued that compensation mechanisms for the news industry have become an unavoidable issue as AI massively absorbs and uses existing content.
"When AI uses information that you generate, it should at least pay a corresponding price," Stiglitz said. Otherwise, the long-term result will be the gradual disappearance of quality journalism, and the quality of public discourse will deteriorate accordingly.
Europe's Experiment: Finding Balance Between Free Speech and Social Risk
Stiglitz participated in "The Road to Freedom: Economics and the Good Society" forum on January 13, organized by the Yu Kuo-hwa Cultural and Educational Foundation, co-hosted by Storm Media and the International Peace Foundation, and supported by TSMC and Taiwan Bridges. He spoke with Storm Media in an exclusive interview following the forum.
Addressing how democratic societies should respond to AI-driven misinformation and information distortion, Stiglitz first pointed to European experience.
"Europe has engaged in quite deep democratic discussions on issues like the Digital Services Act, privacy regulations, and AI ethics," he noted. These discussions do not start from rejecting free speech, but rather attempt to maintain free expression while reducing harm to society.
He added that different societies have varying sensitivities to risk. "In Germany, sensitivity to issues like racial bias is particularly high." Even so, European countries continue to seek a balance that democratic processes can sustain through open, ongoing debate.
Rules Under Pressure: When Economic Threats Interfere with Institutional Choice
However, Stiglitz also noted that such institutional exploration faces external pressure.
"Trump has made it clear that if Europe doesn't abolish the Digital Services Act (DSA) and Digital Markets Act (DMA), he will impose more tariffs on Europe," he said. This forces discussions originally centered on sovereignty, democratic oversight, and public interest to incorporate considerations of economic retaliation.
In his view, this represents the reality facing rules-based governance in the current international environment.
News Industry's Structural Dilemma: Content Used Without Return
Turning to the core component of the information ecosystem, Stiglitz focused on the conditions for journalism's survival.
"If we want credible journalism, we must ensure it has a viable business model," he stated bluntly. News is not naturally generated but requires professional labor, time, and institutional investment.
As AI massively absorbs and reuses existing content, he pointed out that the news industry faces not just technological disruption, but a structural survival problem. Without reasonable compensation mechanisms, news production that requires substantial human resources and time investment will be difficult to sustain long-term.
Democratic Principles Question: Who Defines Credible Public Knowledge?
As the interview concluded, the reporter refocused on fundamental questions facing democratic society. As artificial intelligence rapidly changes how information is produced and circulated, what principles should democratic nations follow to protect credible journalism and public knowledge?
Faced with this question, Stiglitz paused briefly, then candidly admitted: "This is a very difficult question."
Independent Media Not Natural, But Social Innovation
Stiglitz pointed out that the key lies not in any single technological tool, but in whether democratic society still possesses sufficiently sound institutions to support the formation of public knowledge.
"You must have good, independent institutions to assess the accuracy of information," he said. The core of institutions includes transparency, accountability, and basic recognition of public responsibility.
He reflected on the historical evolution of media institutions. "In the 19th century, there was a lot of what we would call 'poor quality media' today." Only in the 20th century did society gradually establish professional standards for responsible journalism, such as multiple source verification and refusing payment from subjects of coverage.
"This is actually a social innovation that emerged only in the past 100 years," Stiglitz emphasized.
Boundaries of Freedom: Institutions and Attitudes Both Essential
Stiglitz noted that when politicians use "fake news" to dismiss all unfavorable coverage, or attempt to use administrative power to interfere with media access rights, they are essentially eroding the institutional foundation of independent journalism.
He cited examples of Trump stating that unless media report according to his preferences, they cannot enter the Pentagon; and telling CNN reporters that because CNN refused to rename the Gulf of Mexico as the "Gulf of America," they could not cover the White House. Such controversies must ultimately be decided by courts.
In Stiglitz's view, independent and free media depends not only on institutional design, but also requires shared social understanding and attitudinal support.
"Good institutions must be supported by the right attitudes," he said. Society must have enough people who understand why these rules are needed, and when someone doesn't follow them, choose not to recognize their media status.
"When you say you are part of journalism, society is willing to trust you because it knows you haven't taken bribes, have done verification, and follow a code of conduct," Stiglitz concluded.
