Chat GPT Moves into Advertising

For quite some time, media executives have speculated that AI would soon enter the advertising market.  A recent article in TV NewsCheck noted that OpenAI has confirmed it will be entering the advertising game:

This timing was calculated to soften the public relations impact, but the announcement marks a new shift in the generative AI economy.  For years, OpenAI burned investor capital to fuel its user acquisition goals. 

Now, facing an estimated $1.4 trillion in infrastructure costs over the next decade, the company is pivoting to a model very familiar to the media industry: subsidizing free access with advertising.

The article goes on to describe the major impact of this decision.  The article focuses on five key issues regarding the ChatGPT ads announcement:

1. The Economics Of ‘Free AI’ Are Breaking

2. ‘Signals’ And the Contextual Ad Engine

3. The Friday Dump Strategy

4. Google Gemini Threat

5. The Enterprise Security Wake-Up Call

The article is worth reading.  AI will be a key part of the advertising world.  What is clear is that the free AI era is over.

You can access the story in TV NewsCheck here.