CONNECT WITH US
AI & Deeptech

AI & Deeptech

Ads in Chatbots Have Arrived. Here’s What’s Working—and What’s Not

Wired – AI logo

Published on

Add as a preferred source on Google
Ads in Chatbots Have Arrived. Here’s What’s Working—and What’s Not

Anthropic is holding firm on the pledge made in its Super Bowl commercial this year to keep Claude ad-free. The company’s recent IPO filing didn’t even mention the possibility of selling ads to make money from the AI chatbot. It’s easy to maintain the high ground with about $112 billion in investor cash.

The chatbot industry, though, may find selling ads necessary to defray the high costs of generating AI responses. OpenAI is all in, with over 100,000 customers advertising in ChatGPT since ads debuted there in February. Last week, Google expanded ads in its search chatbot AI Mode to 10 more countries beyond the US and declared that users “find them highly relevant.” Advertisers are far from satisfied with the experience, but they expect it to improve.

Ads stand to be particularly vital for the long-term viability of niche chatbot platforms, which can’t rely on the same degree of venture capital largesse as the top AI labs or the massive revenues of tech giants. I recently spoke with Koah Labs, one of a number of new ad technology companies focused on AI experiences. The San Francisco startup markets itself as bringing ads to over 200 apps, such as DeepAI, which offers tools for creative queries, and Liner, which focuses on providing citations in AI answers. It works with brands like telehealth giant Hims and flower delivery service UrbanStems.

Koah has attracted just a tenth of the advertisers OpenAI has, but CEO Nic Baird still believes he’s getting a good sense of what’s working and what’s fuzzy as chatbots take over from traditional search engines—and what their rise will mean for your AI experiences.


Source link
Related Topics:AI & Deeptech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.