Perplexity Abandons AI Advertising Strategy Over Trust Worries
Briefly

Perplexity Abandons AI Advertising Strategy Over Trust Worries
"Perplexity was one of the first AI services to embrace ads in 2024, after it ran tests where sponsored answers appeared under the chatbot's answers. That approach however was phased out last year, and executives at the company now say they don't plan to revisit it, according to the Financial Times. "A user needs to believe this is the best possible answer, to keep using the product and be willing to pay for it," a Perplexity executive told the publication."
"Anthropic, the makers of Claude, recently mocked OpenAI for its decision to show ads to users and has said it has no plans to do the same. The company argues that including ads in Claude would not be in line with its mission of creating a helpful assistant for work and deep thinking, and that users should not need to second-guess whether an AI is being helpful or "subtly steering the conversation towards something monetizable.""
Perplexity has abandoned advertising, saying sponsored answers undermined trust and willingness to pay. The company tested ads in 2024 but phased them out and does not plan to revisit them. OpenAI began showing ads to free and low-cost Go users while asserting ads will not influence ChatGPT's responses or share conversation content with advertisers. Anthropic criticized the move and said Claude will not include ads, arguing ads would conflict with a mission to support work and deep thinking and risk users second-guessing whether the assistant is being steered. Google runs ads in AI mode and AI Overviews but has not added ads to Gemini. Companies are weighing ad strategies to generate revenue as LLM training and operating costs rise and profitability remains elusive.
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