{"id":289603,"date":"2026-02-18T07:45:09","date_gmt":"2026-02-18T07:45:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/289603\/"},"modified":"2026-02-18T07:45:09","modified_gmt":"2026-02-18T07:45:09","slug":"perplexity-drops-advertising-as-it-warns-it-will-hurt-trust-in-ai","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/289603\/","title":{"rendered":"Perplexity drops advertising as it warns it will hurt trust in AI"},"content":{"rendered":"<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\">Simply sign up to the Artificial intelligence myFT Digest &#8212; delivered directly to your inbox.<\/p>\n<p>AI start-up Perplexity has abandoned advertising over fears that it will erode user trust, despite rivals pushing ahead with introducing ads as they seek strategies to make money from the technology. <\/p>\n<p>San Francisco-based Perplexity was one of the first generative AI companies <a href=\"https:\/\/www.ft.com\/content\/ecf299f4-e0a9-468b-af06-8a94e5f0b1f4\" title=\"\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">to introduce ads<\/a> in 2024, running tests in which sponsored answers were displayed under the chatbot\u2019s answers.<\/p>\n<p>However, the company \u2014 which also offers paid subscriptions \u2014 began phasing out the ads late last year. On Tuesday, executives at the company said it had no plans to pursue advertising further. <\/p>\n<p>\u201cA user needs to believe this is the best possible answer, to keep using the product and be willing to pay for it,\u201d a <a href=\"https:\/\/www.ft.com\/stream\/759ba02a-eb9f-42de-8879-d44d2a41bc98\" title=\"\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">Perplexity<\/a> executive said. <\/p>\n<p>Perplexity\u2019s ads were labelled and the company said they had no bearing on the chatbot\u2019s responses. <\/p>\n<p>But the executive said in general \u201cthe challenge with ads is that a user would just start doubting everything\u2009.\u2009.\u2009.\u2009which is why we don\u2019t see it as a fruitful thing to focus on right now\u201d.<\/p>\n<p>It comes as leading AI groups have followed Perplexity in introducing advertising to start making money from free users and appease investors as they burn through cash to train and sustain the large language models that underpin popular products.<\/p>\n<p>OpenAI last week began testing advertising on its core product, ChatGPT, for users who do not pay for a subscription. It has a similar model, where labelled ads appear below answers. It has emphasised that ChatGPT\u2019s answers are not influenced by these sponsors.<\/p>\n<p>Google has advertising in AI mode, as well as in its AI Overviews summaries on traditional search. But the search giant has so far held off introducing ads into its Gemini chatbot.<\/p>\n<p>In contrast, Anthropic this month committed to keeping its chatbot Claude free from ads.<\/p>\n<p>Perplexity was also one of the first to introduce shopping features on its platform, followed by Google and OpenAI. Unlike its competitors, however, executives said Perplexity did not make money from this feature or a cut of sales.<\/p>\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<p><a href=\"https:\/\/www.ft.com\/content\/9de227a5-2bc1-4730-88b1-dbbb5b559ee8\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/https:\/\/images.ft.com\/v3\/image\/raw\/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F4c1fd3.jpeg\" alt=\"Montage image of Amazon shopping boxes, a hand holding a phone displaying Sparky, Walmart\u2019s AI assistant, a line chart, and speech bubble and shopping cart icons\"\/><\/a><\/p>\n<p><a href=\"https:\/\/www.ft.com\/content\/4e05a5c5-84ad-4f8a-991a-d7f3842de76d\" title=\"\" data-trackable=\"link\" rel=\"nofollow noopener\" target=\"_blank\">Valued at $18bn<\/a>, with a reported $200mn in annualised revenues, Perplexity makes the majority of its money from subscriptions. It offers free services, as well as tiers ranging from $20 to $200 a month. It has more than 100mn users, according to executives.<\/p>\n<p>Ads on Perplexity have been wound down, and executives said it is primarily focused on ensuring answers are accurate.<\/p>\n<p>\u201cWe are in the accuracy business, and the business is giving the truth, the right answers,\u201d said another Perplexity executive. Although it could revisit advertising in the future, the executive said it was \u201cmisaligned with what the users want\u201d and it might \u201cnever ever need to do ads\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the Artificial intelligence myFT Digest &#8212; delivered directly to&hellip;\n","protected":false},"author":2,"featured_media":289604,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":{"0":"post-289603","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/289603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=289603"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/289603\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/289604"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=289603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=289603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=289603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}