You love your AI chatbot, right? Getting instant answers, drafting emails, or even just chatting – all for free! But get ready for a significant shift: ads are coming to your favorite AI companions, and it’s sparking a lively debate about privacy and the future of online advertising.
Companies like OpenAI, the creator of ChatGPT, have begun showing ads to free and low-cost users. Why? Because running these powerful AI models costs a fortune, and they need new ways to make money. Microsoft’s Copilot already uses contextual ads, and even AI search engines like Perplexity are testing them. Google is also experimenting with ads in its AI overviews, though they’re treading carefully with their Gemini chatbot, emphasizing trust and privacy.
This move raises big questions. Is your personal data safe? OpenAI assures users that ads won’t modify chatbot responses and they won’t sell your data. However, as one expert puts it, “when it’s free, you’re the product.” It’s a trade-off many of us already make for online services.
For advertisers, this is a massive opportunity. Early results show incredibly high conversion rates from users interacting with AI models. Experts predict AI assistants could capture up to 2% of the online advertising market by 2030. Brands are not just buying screen space; they’re also focusing on “Generative Engine Optimization” (GEO) – the new SEO – to ensure their products appear in chatbots’ organic responses. If an AI doesn’t mention your brand, for some users, it might as well not exist.
The integration of advertising into AI is set to be a “game changer” for the industry. While privacy concerns remain, the value AI provides might just lead users to accept this new ad-supported reality.
Source: https://www.channelnewsasia.com/world/ai-chatbots-advertisements-privacy-concerns-5932521
