AI and the Collapse of the www -- by Alex Chan

This paper studies market design for generative AI intermediation. AI answer systems can improve user experience while diverting visits that finance publisher content and generate source-level quality signals. I show that an AI platform that underinternalizes future content reproduction retains too little referral traffic and can make costly open-web information subcritical, even with truthful content, accurate answers, and rational users. The mechanism can be self-reinforcing: less source-level measurement weakens conventional search, inducing further AI reliance. Sustainable repair requires replacing displaced revenue and deleted measurement through visitor-replacement royalties, audited provenance, human-information audits, and keystone-topic compensation.