I'm confused by the word "but" in that headline. Seem like they are trying to imply cause and effect when the reality is that readers trust outlets less who use AI whether they label them or not.
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Yeah, this is perfectly consistent with the idea that people don't want to read AI generated news at all.
The title of the paper they are referencing is Or they could just not use it?: The paradox of AI disclosure for audience trust in news. So the source material definitely acknowledges that. And that is a great title, haha.