The rapid introduction of advertising into conversational AI platforms has prompted debate over privacy and trust, as leading technology firms look to generate revenue from widely used chatbots. Companies including OpenAI, Microsoft, Google, and Perplexity have either launched or tested ads within their AI tools, while industry leaders defend their approaches, and critics question the impact on users.
OpenAI, the developer of ChatGPT, has begun displaying advertisements within chatbot conversations for free and low-cost users. The move is aimed at balancing hundreds of billions in spending commitments with fresh income streams.
The decision drew swift mockery from rival Anthropic, which has built its brand around safety and data security.
During last week’s Super Bowl, Anthropic aired an advertisement showing a man seeking advice from a conversational AI, which then inserts promotional copy for a dating site into an otherwise relevant reply.
OpenAI chief executive Sam Altman responded by saying the clip was “clearly dishonest”.
Elsewhere in the sector, Microsoft has been running contextual ads and sponsored content in its Copilot AI assistant since 2023. AI search engine Perplexity has been testing advertisements in the United States since 2024, while Google has also been testing ads in the AI “overviews” offered by its search engine since last year.
Data privacy concerns in focus
Google has repeatedly said it does not intend to run advertisements in its Gemini chatbot. Demis Hassabis, head of Google’s DeepMind AI arm, said ads “have to be handled very carefully”.
“The most important thing” in AI is “trust in security and privacy, because you want to share potentially your life with that assistant,” he added.
OpenAI has sought to reassure users that ChatGPT’s responses will not be altered by advertisements that appear alongside conversations rather than embedded within them. The company has also pledged not to sell user data to advertisers.
AI companies are “concerned that selling ads will scare away users,” said Nate Elliott, an analyst with US data firm eMarketer.
But “when it’s free, you’re the product. It’s a risk we’re all more or less aware of already,” said Jerome Malzac of AI consultancy Micropole. “We accept it because we find value in it.”
If that proves correct, advertisers are expected to embrace the growth of AI as it reaches more internet users worldwide.
Potential game changer for digital marketing
“It’s going to be a game changer for the entire industry,” said Justin Seibert, head of Direct Online Marketing.
“We’re already seeing how high the conversion rates (interactions resulting in a purchase) are for people that are coming in from ChatGPT and the other LLMs (large language models),” he added.
HSBC analysts suggested in a report that AI assistants could account for up to 2% of the online advertising market by 2030.
Brands including US supermarket chain Target and software maker Adobe are already prioritising visibility on the new channel.
Beyond purchasing advertising space, companies are also seeking to have their products featured in chatbots’ organic responses.
The practice, known as GEO (Generative Engine Optimisation), is an evolution of Search Engine Optimisation developed during Google’s dominance of the web.
“We identified 90 rules that can make sure the content you create is valued by AI and spread to the right places,” said Joan Burkovic, head of French GEO startup GetMint.
The company says it already has 100 clients, including fashion brand Lacoste.
Malzac pointed to techniques such as citing scientific papers, adding a “frequently asked questions” section to websites, and publishing structured, regularly updated information.
“If your brand isn’t referenced (by chatbots), it no longer exists” for some users, he warned.
