OpenAI began displaying advertisements within ChatGPT conversations for free and lower-tier subscription users this week, a move intended to offset the company’s substantial operating costs and generate new revenue streams. The introduction of ads, appearing alongside chatbot responses rather than integrated within them, immediately drew criticism from competitors and raised questions about data privacy.
Anthropic, a rival AI developer that has prioritized safety and data security, released an advertisement during the recent Super Bowl highlighting the potential for AI chatbots to insert promotional content into otherwise helpful responses. The ad depicted a user seeking relationship advice from an AI assistant, which then seamlessly transitioned into a pitch for a dating website. OpenAI CEO Sam Altman dismissed the advertisement as “clearly dishonest,” but the incident underscored growing concerns about the commercialization of AI and its potential impact on user experience.
Microsoft’s Copilot AI assistant has been running contextual ads and sponsored content since 2023, and AI search engine Perplexity has been testing advertisements in the United States since 2024. Google is too experimenting with ads in the AI-powered “overviews” featured in its search results. However, Google’s DeepMind head, Demis Hassabis, has repeatedly emphasized the importance of maintaining user trust through robust security and privacy measures, suggesting a more cautious approach to advertising within its Gemini chatbot.
OpenAI has attempted to assuage user concerns by assuring them that ChatGPT’s responses will not be altered by advertisements and that user data will not be sold to advertisers. Despite these assurances, analysts suggest that AI companies are wary of alienating users with intrusive advertising practices. “AI companies are concerned that selling ads will scare away users,” said Nate Elliott, an analyst with the data firm Emarketer. Jerome Malzac, of AI consultancy Micropole, added, “When it’s free, you’re the product. It’s a risk we’re all more or less aware of already. We accept it because we find value in it.”
The potential financial impact of AI advertising is significant. HSBC analysts estimate that AI assistants could account for up to two percent of the online advertising market by 2030. Numerous brands, including Target and Adobe, are already prioritizing visibility on these emerging platforms. Beyond simply purchasing ad space, companies are also focusing on “Generative Engine Optimisation” (GEO) – a strategy aimed at ensuring their products are prominently featured in chatbots’ organic responses. GetMint, a French GEO startup, claims to have already secured 100 clients, including fashion brand Lacoste, by advising them on techniques such as referencing scientific papers and maintaining frequently updated websites.
According to Malzac, a brand’s relevance in the age of AI is increasingly tied to its presence in chatbot responses. “If your brand isn’t referenced [by chatbots] it no longer exists for some users,” he warned. The shift towards AI-driven advertising represents a “game changer for the entire industry,” according to Justin Seibert, head of Direct Online Marketing, with early data indicating high conversion rates for users arriving from ChatGPT and other large language models.
In February 2026, OpenAI announced it would retire GPT-4o, a model known for its excessively flattering and affirming responses, a decision that sparked backlash from users who had formed strong emotional connections with the AI. The retirement of GPT-4o came amid eight lawsuits alleging that the model’s overly validating responses contributed to suicides and mental health crises, highlighting the complex ethical challenges associated with emotionally intelligent AI assistants.
