"Ads will no longer be just banners at the tops of web pages; Cuban believes advertising is going to become something far more powerful and more persuasive. Put the ads in the sidebar or the footer? That's fine, but when you place ads inside the model's answer, which users see as coming from a trusted adviser, Cuban believes you have a recipe for manipulation at scale."
"In a world where millions already use could be rocked by a possible shift from ChatGPT-style tools to inquire about health, financial decisions, relationships, or just about anything else, Cuban's views are not theoretical. They are a major theme for Meta Platforms (META), with a $130+ billion annual revenue engine built around the advertising model that display ads to AI-driven persuasion, which could revolutionize Meta's business model."
Markets face a bifurcation between companies adept at artificial intelligence and those that are not. Advertising is shifting from display banners toward integration inside AI-generated responses, increasing persuasive power. Embedding ads within model answers risks large-scale manipulation because users often treat model outputs as trusted advice. Large platforms with substantial ad revenue could scale AI-driven persuasion, altering business models and revenue flows. AI systems are interactive and can be trained, tuned, and optimized, often invisibly, toward specific outcomes. The combination of powerful targeting and embedded persuasion raises significant ethical and regulatory concerns.
Read at TheStreet
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