"Making AI quicker, smarter and better is proving to be a very expensive business. Companies like OpenAI are investing billions of dollars in hardware, and the likes of Meta are offering top (human) talent huge salaries for their expertise. So perhaps it's no surprise that these businesses have started exploring new ways of making money as well as spending it."
"But this relationship could be risky for consumers if OpenAI became incentivised to push people towards products, rather than offering genuinely objective recommendations. It might even push recommendations when users of ChatGPT are not looking to buy anything at all. This situation reminds me of the early days of online advertising when Google was under pressure from shareholders to increase revenues, following the dot-com bubble."
AI development requires massive spending on hardware and high salaries for top talent. Companies are exploring new revenue streams to offset these costs. OpenAI is considering a partnership with Shopify that would give OpenAI a cut of sales resulting from ChatGPT recommendations. That arrangement could incentivise pushing users toward products rather than providing objective suggestions. Recommendations could be presented even when users are not seeking purchases. Chatbot interfaces provide many opportunities to apply persuasive techniques that influence user behavior, posing consumer-risk and trust concerns if monetization undermines quality.
Read at The Conversation
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