Perplexity begins testing ads in AI search
As part of its monetisation strategy, AI search engine Perplexity has started experimenting with ads, showcasing sponsored follow-up questions in US-based searches while ensuring unbiased AI-generated answers.
AI-powered search engine Perplexity has started testing advertisements in the US, marking its first foray into ad-based monetisation. These ads appear as ‘sponsored follow-up questions,’ offering suggestions like ‘How can I use LinkedIn to enhance my job search?’ They are labelled and displayed alongside AI-generated answers without altering the platform’s objectivity or user privacy.
The company views advertising as essential for sustainable revenue growth, complementing its premium subscription service. Perplexity is partnering with brands like Indeed and Whole Foods, emphasising its ability to connect advertisers with high-income, educated audiences. However, critics have raised concerns about the platform’s reach and allegations of plagiarism, including lawsuits from major publishers like Dow Jones and The New York Times.
With pressure to diversify income streams, Perplexity is exploring ad formats as it approaches a potential $9B valuation. It remains committed to refining its tools and addressing industry concerns while adapting its platform for broader monetisation.