The AI search engine Perplexity AI will contain advertising in the future – at least in the USA. The company of the same name wants to keep up with the AI competition. Publishing partners should also benefit. It wasn’t long ago that other media companies sued Perplexity.
The hype surrounding the topic of artificial intelligence continues. However, many AI companies lack a functioning business model. The AI search engine Perplexity AI therefore wants to generate income from a classic source of income: advertising.
Perplexity AI will display advertising in the future
In the USA, AI search engines will show advertisements to users in the future. Perplexity announced this in one official announcement to. Accordingly, “sponsored questions” should appear in web searches. The background: Similar to classic search engines, the company wants to make money with search suggestions by advertising customers paying for them.
The ads are said to be among the language model’s answers. Users who are looking for specific things will be shown advertisements and search suggestions that match the content. According to Perplexity, these should be marked as sponsored.
Revenue from subscription model not sufficient
Perplexity is reportedly close to closing a $500 million funding round. Against this background, the company apparently wants to show itself to be profitable with its current advertising plans – even if the advertisements are initially limited to the USA.
For a long time, Perplixity AI was able to stand out not only from classic search engines, but also from the AI competition. The language model not only lists search results, but also summarizes them and displays relevant sources.
However, ChatGPT now works similarly through the integration of GPT Search. Perplexity’s business model is therefore under threat. The company also justifies its decision to place advertising in the future with a view to its media partners with whom Perplexity shares its income – including, among others The mirror.
The statement states: “Experience has taught us that subscriptions alone do not generate enough revenue to create a sustainable revenue share program.” Other publishers had previously sued the company for alleged copyright infringement.
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As a Tech Industry expert, I believe that the introduction of advertising to Perplexity AI’s AI search engine is a natural progression in the evolution of the technology. Advertising is a key revenue stream for many companies, and integrating it into a search engine can help offset the costs of developing and maintaining such advanced AI technology.
However, it is important for Perplexity AI to ensure that the advertising does not compromise the user experience or the integrity of the search results. Transparency and user trust are crucial in the world of AI, and any advertising must be clearly labeled and relevant to the user’s search queries.
Overall, I see this move by Perplexity AI as a strategic decision to monetize their technology and expand their business model. As long as they continue to prioritize user experience and deliver relevant, high-quality search results, I believe that integrating advertising into their AI search engine can be a successful venture.
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