In a wide-ranging interview, James Daunt, the CEO of Waterstone’s, the prominent British book retailer, has shared his views on the potential impact of artificial intelligence (AI) on the publishing industry. Daunt’s comments come amidst a growing debate within the sector about the rise of AI-generated content.
Daunt acknowledged that while Waterstone’s utilises AI for logistical purposes, the company is hesitant to stock books created using the technology. “As a bookseller, we sell what publishers publish, but I can say that instinctively that is something that we would recoil [from],” he stated. Daunt’s concerns echo the sentiments of many authors who fear being replaced by AI, with a recent report finding that over half of published authors are worried about this prospect.
However, Daunt also recognised that the rapid advancements in AI could lead to the creation of high-quality, AI-generated literary works. “Who’s to know? [Technology firms] are spending trillions and trillions on AI and maybe it’s going to produce the next War and Peace,” he said. Daunt emphasised that if such books were clearly labelled as AI-generated, Waterstone’s would be willing to sell them, as long as they did not misrepresent themselves.
The CEO’s stance reflects a cautious and balanced approach, as he navigates the complex landscape of AI’s impact on the publishing industry. Daunt’s comments suggest that while Waterstone’s is open to the potential of AI-generated content, the company remains committed to maintaining the integrity of the bookselling experience and the connection between readers and authors.
Daunt’s broader strategy for Waterstone’s has been to empower individual store managers to cater to their local communities, rather than imposing a top-down approach. This decentralised model has helped the company defy the broader decline of the high street, with around 10 new stores opening each year and profits reaching £33 million in 2024 on sales of £528 million.
The success of Waterstone’s, both in the UK and through its US counterpart Barnes & Noble, has led to speculation that the company could be headed for a public listing, either in London or New York. Daunt acknowledged that a stock market flotation is a “likely inevitability,” as private owners typically aim to sell businesses they have acquired.
As the publishing industry continues to grapple with the implications of AI, Waterstone’s stance provides a nuanced perspective that balances the potential benefits of the technology with the need to preserve the core values of the bookselling experience.
