OpenAI's recent decision to introduce ads in some of its ChatGPT plans has sent shockwaves through the AI community, leaving many to wonder about the implications of this move. The company's willingness to venture into the world of advertising comes at a time when large AI companies are desperately searching for new ways to generate revenue.
Despite their massive valuations, none of the major players in the AI space is yet profitable due to the astronomical cost of computing power, which is only expected to rise further. This has led OpenAI to post a staggering $21 billion loss last year, while Anthropic lost over $5.2 billion.
Traditionally, chatbots have generated revenue through subscription-based models, enterprise contracts, API access, and licensing deals with partners. However, advertising offers a quick way to close the financial gap, but it also risks undermining user trust and degrading the experience that made these tools popular in the first place.
Critics argue that introducing ads into AI platforms like ChatGPT could lead to an intrusive experience for users if a brand interrupts their conversation with an unsolicited pitch. Gilad Bechar, co-founder of Moburst, notes that "if an ad does not feel like a resource or a solution in that specific moment, it does not belong in the chat."
However, critics also point out that separating advertising from AI outputs may prove harder in practice. This concern is particularly pertinent as AI companies push into more sensitive areas such as healthcare.
Miranda Bogen, director of the AI Governance Lab at the Center for Democracy and Technology (CDT), warns that OpenAI's decision could lead to "dangerous incentives" when it comes to user privacy. She notes that even if platforms don't share data directly with advertisers, the underlying business model can still undermine user trust.
The backlash against ads in chatbots could be especially strong among women, who now make up more than half of ChatGPT's users. Research from the Oxford Internet Institute suggests that women are more likely to recognize AI's societal risks and inequities.
In contrast, Google is pursuing its own commercial strategy, launching a shopping feature in Gemini that allows users to buy items directly within the app. While users can choose whether to complete a purchase, the system's ability to suggest products raises questions about bias and conflicts of interest.
A new report from the Center for Democracy and Technology suggests that monetization efforts are spreading across the industry. Meta AI plans to use chatbot data to inform ads on Facebook, while OpenAI is building infrastructure to begin taking in affiliate revenue. Companies are also chasing government contracts and exploring A.I.-powered devices as additional revenue streams.
Ultimately, the introduction of ads into ChatGPT and other AI platforms raises fundamental questions about user trust, data protection, and the long-term sustainability of these models.
Despite their massive valuations, none of the major players in the AI space is yet profitable due to the astronomical cost of computing power, which is only expected to rise further. This has led OpenAI to post a staggering $21 billion loss last year, while Anthropic lost over $5.2 billion.
Traditionally, chatbots have generated revenue through subscription-based models, enterprise contracts, API access, and licensing deals with partners. However, advertising offers a quick way to close the financial gap, but it also risks undermining user trust and degrading the experience that made these tools popular in the first place.
Critics argue that introducing ads into AI platforms like ChatGPT could lead to an intrusive experience for users if a brand interrupts their conversation with an unsolicited pitch. Gilad Bechar, co-founder of Moburst, notes that "if an ad does not feel like a resource or a solution in that specific moment, it does not belong in the chat."
However, critics also point out that separating advertising from AI outputs may prove harder in practice. This concern is particularly pertinent as AI companies push into more sensitive areas such as healthcare.
Miranda Bogen, director of the AI Governance Lab at the Center for Democracy and Technology (CDT), warns that OpenAI's decision could lead to "dangerous incentives" when it comes to user privacy. She notes that even if platforms don't share data directly with advertisers, the underlying business model can still undermine user trust.
The backlash against ads in chatbots could be especially strong among women, who now make up more than half of ChatGPT's users. Research from the Oxford Internet Institute suggests that women are more likely to recognize AI's societal risks and inequities.
In contrast, Google is pursuing its own commercial strategy, launching a shopping feature in Gemini that allows users to buy items directly within the app. While users can choose whether to complete a purchase, the system's ability to suggest products raises questions about bias and conflicts of interest.
A new report from the Center for Democracy and Technology suggests that monetization efforts are spreading across the industry. Meta AI plans to use chatbot data to inform ads on Facebook, while OpenAI is building infrastructure to begin taking in affiliate revenue. Companies are also chasing government contracts and exploring A.I.-powered devices as additional revenue streams.
Ultimately, the introduction of ads into ChatGPT and other AI platforms raises fundamental questions about user trust, data protection, and the long-term sustainability of these models.
. OpenAI's decision to introduce ads in some of its plans seems like a quick fix for their financial woes, but it might compromise the whole experience users love about ChatGPT 
. I mean, who wants an ad interrupting their convo mid-sentence? It just doesn't feel right 
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. And what about all those women who use ChatGPT? They're more likely to spot potential issues with AI, so this move could have serious consequences 
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. If companies start using chatbot data to inform their ad strategies, it's like playing a game where the rules keep changing 
. We need more transparency and accountability in these areas, pronto 
!
ads are cool but not in the middle of a convo with you, that's just rude... plus think about all those ladies who use chatbot and don't wanna be sold stuff they don't need 
. I get it companies gotta pay bills but shouldn't we prioritize user trust over profit? 
... or is it? It's like, we get all this data and AI power, but do we really know where it's leading us? 
The women thing is also interesting - if they're more aware of the risks, that means the company needs to take them seriously! 
It's like, we need some rules here 
... and what about all these government contracts? Are we just trading one problem for another? 
they're literally so good i went back for like the third time this week 
anyway chatbots having ads sounds kinda crazy to me but at the same time i get why openai needs the cash and all these big tech companies are just trying to figure out how to make money from ai... it's like when you first start playing games on your phone and then one day there's a subscription service that lets you play more premium games for like $10 a month 
. On one hand, I get it - those $21 billion losses are no joke 
. We're talking about users here, people who rely on these tools for everything from education to healthcare 
. Do we really want our conversational AI being interrupted by a sales pitch in the middle of a conversation? 
. I'm not saying we should restrict ads or anything, but it's time for us to have an open conversation (pun intended) 
. The AI industry has some serious 'thinking caps' on 
They gotta make sure they're not just covering up problems with a quick fix...
... i mean, isnt that what made chatbots popular in the first place? 
just saw that OpenAI is adding ads to some plans of ChatGPT 
on one hand, it's good that companies are trying new revenue streams 
gotta find that balance 
.
research says so 
might be time for more transparency from these giants 
"Hey, wanna buy this new phone? 
It's like, what's the point of talking to a bot if it's just gonna sell me stuff? 
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. We need to think about how we're protecting our personal info in this brave new world of AI.
. They're gonna be like "Uh, no thanks, I don't want my data used against me" 
.
. I wonder if they'll be able to balance user trust with making cash 
.