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.
San Francisco-based Perplexity was one of the first generative AI companies to introduce ads in 2024, running tests in which sponsored answers were displayed under the chatbot’s answers.
However, the company — which also offers paid subscriptions — began phasing out the ads late last year. On Tuesday, executives at the company said it had no plans to pursue advertising further.
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