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🇰🇷 South Korea /Technology

ChatGPT to Introduce Ads for Free, Low-Tier Users in Nine Countries

From Hankyoreh · (6m ago) Korean

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • OpenAI is expanding its advertising pilot program to include free and lower-tier ChatGPT users in nine countries, including South Korea, the UK, Japan, Brazil, and Mexico.
  • The move aims to diversify revenue streams as competition in the generative AI service market intensifies and operational costs rise.
  • OpenAI will clearly label sponsored content and ensure advertisers cannot access user conversation data or personal information.

OpenAI is taking a significant step to monetize its popular ChatGPT service by introducing advertisements to free and lower-tier users. This expansion, which includes South Korea, the UK, Japan, Brazil, and Mexico, follows a pilot program initiated in January in the US, Canada, and Australia. The company's strategy to generate revenue beyond subscriptions is a clear response to the escalating costs associated with developing and operating large language models and AI data centers.

As companies are highly interested in how they can connect with users in a conversational, intent-based environment, we have expanded the ChatGPT ad pilot program areas.

— Dave DugenOpenAI's Global Solutions Lead, explaining the expansion of the ad pilot program.

While the introduction of ads might raise concerns about user experience and the potential for confusion between ads and AI-generated responses, OpenAI has stated its commitment to transparency. All advertisements will be clearly marked as 'sponsored content,' and advertisers will be restricted from accessing user data, receiving only performance metrics like views and clicks. This approach aims to balance monetization with user trust and privacy, a critical consideration in the AI space.

OpenAI will operate the ad experience cautiously in each region, prioritizing user experience and trust.

— Dave DugenOpenAI's Global Solutions Lead, emphasizing the company's commitment to user experience and trust.

The AI industry is increasingly exploring "AI advertising" models as a viable revenue stream. Companies like Google have also expressed intentions to integrate ads into their AI chatbot, Gemini. This trend underscores the financial realities of the AI boom, where the immense investment required for technological advancement necessitates innovative and diverse income generation strategies beyond traditional subscription services. For OpenAI, this move is a calculated effort to ensure the long-term sustainability and growth of its groundbreaking AI technology.

Advertising has always played a big role in scaling products to billions of people, and I think the formats that work well in our AI modes can be successful in Gemini apps as well.

— Philipp SchindlerGoogle's Chief Business Officer, discussing the potential for AI-integrated advertising.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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