AI Chatbots and Ads: Privacy Issues and Impact on Advertising
TL;DR
- AI chatbots are now featuring advertisements as companies like OpenAI and Microsoft seek new revenue streams. This shift is raising significant privacy concerns among users and experts, prompting discussions about data security. While some believe users will accept ads for value, others worry about the user experience. Brands are also exploring Generative Engine Optimization (GEO) to ensure visibility within AI-generated content.
AI Chatbots and the Rise of Advertising: A New Frontier
The integration of advertisements into AI chatbots is raising privacy concerns as brands adapt to the rapidly changing online landscape. OpenAI has started displaying ads to free and low-cost ChatGPT users to generate revenue.
Anthropic, known for its focus on safety and data security, has criticized this move. Microsoft has been incorporating contextual ads and sponsored content into its Copilot AI assistant since 2023. Perplexity has also been testing ads in the United States since 2024, and Google is experimenting with ads in its AI "overviews".
Data Privacy Considerations
Demis Hassabis, head of Google's DeepMind AI, emphasized the importance of handling ads carefully, stating that "trust in security and privacy" is crucial. OpenAI assures users that ads will not alter ChatGPT's responses and promises not to sell user data to advertisers. According to Nate Elliott, an analyst with US data firm Emarketer, AI companies are wary that ads might deter users. Jerome Malzac from AI consultancy Micropole suggests that users may accept ads if they find value in the service.
Impact on the Advertising Industry
Justin Seibert, head of Direct Online Marketing, believes AI-embedded ads will be a "game changer" for the industry. HSBC analysts predict that AI assistants could account for up to two percent of the online advertising market by 2030. Brands like Target and Adobe are already prioritizing visibility on this new channel.
Generative Engine Optimization (GEO)
Companies are also aiming to have their products featured in chatbots' organic responses through Generative Engine Optimization (GEO). Joan Burkovic, head of French GEO startup GetMint, stated that they have identified "90 rules that can make sure the content you create is valued by AI and spread to the right places." GetMint already has 100 clients, including Lacoste.
Photo: AP
According to Jerome Malzac, techniques such as including references to scientific papers, adding a "frequently asked questions" section to your website, and posting structured and regularly updated information are crucial. He warns that "if your brand isn't referenced (by chatbots) it no longer exists" for some users.
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