One of the big companies in the field of AI abandons the idea of integrating ads in the answers given by the chatbot: “The user would question everything”
Aravind Srinivas, CEO of Perplexity, during an interview watched on a laptop, PHOTO: May James-SOPA Images/Shutterstock Editorial/Profimedia
Several AI companies are testing the integration of ads into chatbot responses, with the idea of monetizing non-subscribing users as well. Perplexity, however, is abandoning advertising, explaining that it could erode the trust of those who use the app.
The San Francisco-based company, valued at $18 billion, was one of the first generative AI firms to introduce ads in 2024, testing the display of sponsored responses below chatbot responses
But the company began to phase out ads from the end of 2025, writes the Financial Times.
“The problem with ads is that the user starts questioning everything, which is why we don't see it as a profitable direction at the moment,” says a company executive. The executive added that a user must be convinced that he is getting the best answers from the chatbot in order to continue using it.
The ads on Perplexity were labeled, and the company claimed they did not influence the chatbot's responses in any way.
Perplexity gets most of its revenue through paid subscriptions, with the two tiers priced at $20 and $200/month, respectively. The heads of the company claim that the number of users exceeds 100 million.
OpenAI and Google are testing different ways to integrate ads into free AI products.
