AI subscriptions unsustainable, advertising key to innovation: Taboola CEO

Global ad platform Taboola is making its generative AI monetization technology available to other AI companies. The move aims to help businesses generate revenue from AI services, which are rapidly gaining popularity.

Taboola CEO Adam Singolda stated that the internet is evolving towards more conversational and agentic interactions. While AI companies have created popular products, many struggle with sustainable business models. Singolda believes that consumers will not subscribe to every AI service they use, making advertising a crucial revenue stream for AI innovation.

Taboola's DeeperDive AI answer engine, already used by several news organizations, integrates media content with AI. It allows readers to explore news and topics through conversation, enhancing user engagement and offering a new monetization path for publishers. DeeperDive can embed high-intent ads directly into AI-generated answers, turning user queries into commercial opportunities.

The technology behind this monetization is Taboola's "Realize" ad platform, which connects DeeperDive with a vast network of advertisers. As generative AI services proliferate, the demand for sustainable business models grows. Taboola's AI platforms can leverage user behavior insights to convert search intent into ad revenue. For instance, a query about buying a house could trigger ads for mortgage or financial products, balancing information delivery with commercial needs.

DeeperDive utilizes large language models, retrieval systems, and Taboola's proprietary Intent Graph technology. It generates tens of millions of AI-powered answers monthly for over 7 million users. The platform also uses NVIDIA's accelerated computing for high-throughput, low-latency inference, supporting millions of AI interactions and continuously improving answer quality, relevance, and ad performance.

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Consumers cannot subscribe to all the AI services they use, so advertising will become an important source of income to support the continuous innovation of the AI industry.