Why is Perplexity removing ads from its AI chatbot?

Perplexity is removing ads because executives believe they could erode user trust in the product, which is crucial for customer retention and potential subscriptions.

Are other AI chatbots also including ads?

Yes, OpenAI has begun testing ads in ChatGPT, and Google has integrated ads into its AI features, while Anthropic has committed to keeping Claude ad-free.

What revenue streams is Perplexity exploring instead of ads?

Perplexity is focusing on expanding its enterprise sales to target large businesses and professionals as an alternative revenue stream.

Home / Technology / AI Chatbots: Ads vs. User Trust

AI Chatbots: Ads vs. User Trust

18 Feb

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Summary

Perplexity is phasing out ads, citing user trust concerns.
Some AI firms like OpenAI are testing ads for sustainability.
Perplexity is exploring enterprise sales for revenue.

The debate over advertising in AI chatbots has intensified, with Perplexity announcing its decision to phase out ads. Executives from the AI search startup believe that displaying ads alongside chatbot responses could undermine user trust, a critical factor for retaining users and encouraging subscriptions. This strategic shift places Perplexity in alignment with competitors like Anthropic, which has strongly opposed ads in its AI assistant, Claude, arguing they prioritize engagement over genuine helpfulness.

While Perplexity is moving away from advertising, other major players like OpenAI have started testing ads in ChatGPT, aiming to make their free service financially sustainable. Google has also integrated ads into its AI features. Perplexity, however, is exploring alternative revenue streams. The company is reportedly expanding its enterprise sales team, targeting large businesses and professionals to build a more reliable income source without relying on advertising.

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