Politico, one of the first newsrooms to snag a union contract with AI rules, is now facing a dispute with its PEN Guild members. These journalists claim that the AI provisions in their contract got violated, sparking a legal showdown with management. The outcome could shape how much say journalists have in AI use in newsrooms nationwide. Last year, Politico rolled out AI-generated live news summaries during major political events, like the Democratic National Convention and the US vice presidential debates.

The PEN Guild, representing Politico and E&E News, alleges that the AI tools breached their contract. They are gearing up for arbitration this July to resolve the conflict. Ariel Wittenberg, the PEN union chair and E&E public health reporter, says the company failed to give proper notice or negotiate the AI rollout with the union. The union argues that AI tools are performing tasks typically done by human staff, violating their agreement. “Not just a contract dispute, but a test of journalists’ input on AI use,” says Newsguild president Jon Schleuss.

Politico introduced a suite of AI tools called Policy Intelligence Assistance for subscribers in March, partnering with Capitol AI startup. The tools promised to blend generative AI with Politico’s policy expertise seamlessly. However, union members claim these tools strayed from ethical standards. Arianna Skibell, the union’s vice chair, highlights instances where AI-generated content contained language and factual errors. One live summary even used phrases prohibited for human writers, raising concerns about oversight and compliance with Politico’s correction policies.

Despite AI’s potential, concerns about accuracy and compliance persist among union members. One premium AI tool inaccurately reported on abortion rights, suggesting the constitution still protected Roe v. Wade in 2025. Politico’s parent company, Axel Springer, like other media giants, has embraced AI partnerships. While AI has enhanced journalistic work, instances of errors and ethical breaches raise questions about its integration in newsrooms. Politico’s clash with its union members could set a new industry standard for AI use in journalism, potentially reshaping how writers and reporters influence technology adoption.