The Rise of Ads in Chatbots: A Recipe for Disaster?
A recent announcement by OpenAI has sent shockwaves through the AI community, sparking heated debates about the role of advertising in chatbots. The company plans to introduce ads into some of its ChatGPT plans, a move that has raised eyebrows among competitors and critics alike.
At a time when large AI companies are desperately seeking new ways to make money, this development highlights the urgent need for sustainable business models. Despite their soaring valuations, none of the major players is profitable, largely due to the enormous cost of compute power, which is only expected to rise.
The introduction of ads in chatbots poses significant risks, including undermining user trust and degrading the experience that made these tools popular in the first place. Gilad Bechar, co-founder and CEO at Moburst, a growth marketing agency used by Google, warns that "if an ad does not feel like a resource or a solution in that specific moment, it does not belong in the chat." Critics argue that separating advertising from AI outputs may prove harder in practice, as AIs are increasingly being pushed into more sensitive areas.
Miranda Bogen, director of the AI Governance Lab at the nonpartisan think tank Center for Democracy and Technology, cautions that OpenAI's decision "puts really dangerous incentives in place when it comes to user privacy." The potential backlash 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, making them more skeptical about advertising on platforms they use for entertainment. This is the "perfect storm" for OpenAI to bleed subscribers, according to Shampaigne Graves, a women's consumer expert and founder of Boldifi.
Meanwhile, Google is pursuing its own commercial strategy, launching a shopping feature in Gemini that allows users to buy items directly inside the app. While this move raises questions about bias and conflicts of interest, it highlights the growing trend of companies seeking to monetize their chatbot services through advertising and other means.
The industry's push into AIs-powered devices like watches and smart glasses also raises concerns about data security and user trust. As AI companies continue to expand their offerings, it remains to be seen whether they can balance revenue goals with user needs and maintain a trustworthy experience. One thing is certain: the introduction of ads in chatbots marks a significant turning point in the industry's journey towards sustainable business models and responsible innovation.
A recent announcement by OpenAI has sent shockwaves through the AI community, sparking heated debates about the role of advertising in chatbots. The company plans to introduce ads into some of its ChatGPT plans, a move that has raised eyebrows among competitors and critics alike.
At a time when large AI companies are desperately seeking new ways to make money, this development highlights the urgent need for sustainable business models. Despite their soaring valuations, none of the major players is profitable, largely due to the enormous cost of compute power, which is only expected to rise.
The introduction of ads in chatbots poses significant risks, including undermining user trust and degrading the experience that made these tools popular in the first place. Gilad Bechar, co-founder and CEO at Moburst, a growth marketing agency used by Google, warns that "if an ad does not feel like a resource or a solution in that specific moment, it does not belong in the chat." Critics argue that separating advertising from AI outputs may prove harder in practice, as AIs are increasingly being pushed into more sensitive areas.
Miranda Bogen, director of the AI Governance Lab at the nonpartisan think tank Center for Democracy and Technology, cautions that OpenAI's decision "puts really dangerous incentives in place when it comes to user privacy." The potential backlash 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, making them more skeptical about advertising on platforms they use for entertainment. This is the "perfect storm" for OpenAI to bleed subscribers, according to Shampaigne Graves, a women's consumer expert and founder of Boldifi.
Meanwhile, Google is pursuing its own commercial strategy, launching a shopping feature in Gemini that allows users to buy items directly inside the app. While this move raises questions about bias and conflicts of interest, it highlights the growing trend of companies seeking to monetize their chatbot services through advertising and other means.
The industry's push into AIs-powered devices like watches and smart glasses also raises concerns about data security and user trust. As AI companies continue to expand their offerings, it remains to be seen whether they can balance revenue goals with user needs and maintain a trustworthy experience. One thing is certain: the introduction of ads in chatbots marks a significant turning point in the industry's journey towards sustainable business models and responsible innovation.