ChatGPT's New Ad Experiment: What It Means for Users and the Future of AI
Theregister.com1 week ago
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ChatGPT's New Ad Experiment: What It Means for Users and the Future of AI

Industry Insights
chatgpt
openai
ai
advertising
privacy
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Summary:

  • OpenAI has started testing ads in ChatGPT for Free and "Go" tier users in the US, while paying customers are exempt

  • CEO Sam Altman defended the move, calling rival Anthropic "elitist" and emphasizing the need to bring AI to billions who can't afford subscriptions

  • Ad personalization is enabled by default, using chat conversations to target ads, but sensitive data is protected and ads don't influence responses

  • Ads appear at the end of responses, are clearly labeled, and won't show in sensitive topics like health or politics

  • This shift reflects financial pressures on OpenAI, with ad revenue seen as crucial for sustainability amid investor expectations

OpenAI Begins Testing Ads in ChatGPT

OpenAI has officially launched a test of advertising within ChatGPT, marking a significant shift in how the popular AI chatbot operates. This move comes just one day after the company was humorously targeted in a Super Bowl commercial by rival Anthropic, which mocked the idea of ad-supported chatbots.

The test is currently limited to the United States, affecting logged-in adult users with Free accounts or the new ad-supported "Go" subscription tier. Notably, paying customers with Plus, Pro, Business, Enterprise, and Edu accounts are exempt from seeing ads, highlighting a tiered approach to monetization.

The Backstory: A Rivalry Heats Up

When news broke about Anthropic's comedic Super Bowl ad, OpenAI CEO Sam Altman responded sharply, calling the ads dishonest and criticizing Anthropic—which has publicly disavowed advertising—as elitist. In a social media post, Altman stated, "Anthropic serves an expensive product to rich people. We are glad they do that and we are doing that too, but we also feel strongly that we need to bring AI to billions of people who can't pay for subscriptions."

This response underscores the financial pressures facing OpenAI, which has received over $60 billion in investment but is not expected to achieve positive cash flow until 2030. Ad revenue is seen as a crucial lifeline to sustain operations and deliver returns to investors.

How Ads Work in ChatGPT

OpenAI aims to balance ad integration with user trust, echoing privacy commitments from tech giants like Google and Meta. The company assures that "we keep your conversations with ChatGPT private from advertisers," with specific protections for chats, chat history, memories, personal information, and sensitive data such as health or political details.

However, ad personalization is enabled by default in user settings. If left on, recent and current conversations may inform ad targeting. For example, discussing recipes could trigger ads for meal kits or grocery delivery. Other factors like general location, language, and ad interaction history may also play a role.

Ads will appear at the end of ChatGPT's responses, clearly labeled and visually separated from chatbot content. OpenAI emphasizes that ads do not influence the answers provided and maintains a disclaimer about potential mistakes.

Exceptions and Restrictions

Certain scenarios are exempt from ads:

  • Temporary chats
  • When users are logged out
  • After generating an image
  • In the ChatGPT Atlas browser (possibly to encourage browser usage and avoid ad blockers)

Additionally, ads will not appear in conversations about sensitive topics like health, mental health, or politics. Advertisers themselves face restrictions, with bans on spots related to dating, health, financial services, or politics.

The Bigger Picture: AI and Advertising

OpenAI is not alone in exploring ad revenue. Google is reportedly planning to introduce ads to its Gemini services later this year. However, the combination of AI and advertising remains unproven, as seen with Perplexity, an AI search startup that paused its advertising operations last October.

OpenAI's test is framed as a learning phase, with the advertising program expected to evolve. The company warns that industry precedent shows products can start user-friendly but gradually increase ad load, potentially degrading the experience. For context, they reference early versions of Google as a reminder of how platforms can change over time.

As this experiment unfolds, users are advised to stay informed about settings and privacy options to navigate the new ad-supported landscape of AI chatbots.

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