AI is No Longer Optional for Publishers, Says KStA Media CEO
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“AI will influence not only yoru private life but also your business life in every aspect,” Thomas Schultz Homberg, CEO, Kölner Stadt-Anzeiger Medien (KStA Media), said during his keynote at the world Printers Summit in Munich.
Founded as a printing company in Cologne, Germany, KStA Media belongs to the DuMont family, which has published Kölner Stadt-Anzeiger as 1876. The company operates print publications,digital platforms,and radio channels. But more needs to be done to secure the future.
Over the years,the company went through “thousands of changes” – reinventing its business,starting new ventures,failing,and succeeding. It does not mean ksta is letting go of print. They still earn about 80 percent of its revenue from print and 20 percent from digital.
But minor AI projects aren’t enough; publishers need to integrate AI across every part of their operations, according to Schultz-Homberg. “It might sound strange or even wrong, but we are convinced that this is the solution that will take our industry into the future,” he said.
Agility and culture-shift key to integrate AI
Publishers have been losing their customary reach, visibility, subscriptions and revenues with the introduction of AI solutions that summarise the news to the readers. Even though these chatbots refer the sites from which the information was sourced from, users rarely click on those links.
“That means if we don’t optimise our business using the same tools that others are using to harm it, then we will have no chance,” Schultz-Homberg said.
The key factor in this transformation is the adoption of new culture. “If you start AI in your company, you have to be ready to give up the culture you had for decades, maybe even longer. The culture has to be totally reinvented,” he said.
As an example, one of the principles in AI culture is agility. At Kölner Stadt-Anzeiger, employees are encouraged to try ideas and take action instead of waiting for board approval. The leadership now focuses on supporting and empowering teams rather than controlling them.
“Business leads make big decisions [some involving millions of euros] on their own, and the company makes sure everyone understands the goals through clear and repeated dialogue,” he added. The reason is that technology is changing fast. By the time the board makes a decision, the technology may already be outdated, replaced by something new.
“this is a risk and a total cultural change,” he said. He highlighted two case-studies to show how KStA is using AI to make customer service and logistics more efficient with minimal human intervention.
AI-Powered Automation Drives Efficiency and Cost Savings at KStA Media
KStA Media, the publisher of the Kölner Stadt-Anzeiger newspaper, is leveraging artificial intelligence (AI) to streamline operations, enhance customer service, and reduce costs. From automating logistics to powering customer interactions, AI is becoming central to the company’s strategy.
AI Revolutionizing Customer Service
KStA Media is implementing AI-driven customer service solutions through its partnership with Novomind. Their iAgent platform is designed to understand customer needs, detect sentiment, translate messages, and generate appropriate responses. A key feature of the system is its ability to identify high-value customers.
“What’s more interesting is that the AI detects whether the person is an important long-term customer or someone who only signs up for promotions,” explained Schultz-Homberg.
The AI can categorize customers – for example, identifying a “gold” customer who is crucial to retain – and then prompt agents to take proactive steps to ensure their continued subscription. this might involve offering gifts, compensation, or prioritizing issue resolution.
Currently, human agents review AI-generated responses before they are sent to customers, but Schultz-Homberg anticipates a fully AI-driven customer service operation within the next 24 months.
Automation in Logistics: Saving Time and Money
Recognizing the complexities of logistics and the prevalence of manual processes, KStA Media is collaborating with Alphabots to identify and automate workflows. This initiative begins with data analytics to map existing processes and identify opportunities for automation.
“We have thousands of processes, and this system helps us determine which are important and which are not,” Schultz-Homberg said.
One notable success has been the automation of delivery book handling. Dispatchers previously managed 30 to 40 delivery books manually each week. Now, this process is 97% automated, resulting in cost savings and reduced errors.
“Automation has saved us 32,000 euros after 12 months. It’s not a huge number, but meaningful because it’s not only about cost savings. It’s about getting better,” he said.
AI is also addressing the critical “last mile” challenge in logistics – ensuring accurate and reliable delivery. Incorrect or missing deliveries lead to subscription cancellations, negatively impacting business.By improving accuracy, AI helps mitigate this risk.
Administrative Task Automation
KStA Media has also automated administrative tasks, achieving 100% automation in some areas and saving five hours of work per week.While seemingly small, these time savings are valuable, especially for smaller teams operating with limited budgets.
“It’s not huge, but it helps, especially when working with smaller teams and tighter budgets,” he added.
Key Takeaways
- AI is being used to identify and prioritize high-value customers for improved service.
- Automation of delivery processes has increased efficiency and reduced errors.
- The company has realized cost savings of 32,000 euros in the first year of automation.
- AI is streamlining administrative tasks, freeing up employee time.
KStA Media’s adoption of AI demonstrates a commitment to innovation and efficiency. As the company continues to refine its AI-powered solutions, it is indeed poised to further optimize operations and enhance the customer experience. The future of media increasingly relies on clever automation, and KStA Media is positioning itself at the forefront of this transformation.