Generative artificial-intelligence tools that now appear at the top of major search engines are depriving news organisations of precious web traffic and advertising revenue, deepening a financial crisis for publishers already battered by the shift to digital media. Publishers say the AI-generated summaries give users the information they need without clicking through to the original articles, shrinking both audience reach and subscription funnels. Evidence is mounting. A recent Pew Research Center study found that when AI summaries accompany search results, users click suggested links only half as often as they do with traditional results. Separate data from optimisation firm OtterlyAI show professional media outlets account for just 29% of citations generated by ChatGPT, while corporate websites supply 36%. The Reuters Institute’s 2025 Digital News Report estimates 15% of people under 25 now rely on generative AI for news, underscoring the speed at which habits are changing. Publishers are experimenting with defensive and offensive tactics. Some have blocked AI crawlers outright; others are negotiating licences or leaning into so-called Generative Engine Optimisation, which tailors headlines and formatting for large-language-model consumption. Licensing deals already struck include the New York Times with Amazon, Google with the Associated Press, and Mistral with Agence France-Presse, yet legal battles continue, notably the Times’ high-stakes lawsuit accusing OpenAI and Microsoft of copyright infringement. Industry executives warn the next few years will be pivotal. "The storm gathering on the horizon will challenge every newsroom," said Boston Globe Media vice-president Matt Karolian, urging publishers to build new revenue shelters. Northeastern University professor John Wihbey predicts that absent workable solutions, the web itself could be reshaped as AI products replace traditional search. Whether partnerships, lawsuits or new optimisation strategies can bridge the funding gap for original reporting remains an open question.