When an algorithm becomes an advisor: Where does help end and advertising begin?

Global generative AI companies are actively seeking ways to monetize their substantial investments in AI infrastructure. A notable example is OpenAI, the creator of ChatGPT, which has begun displaying advertisements within the free version of its popular AI tool in the United Kingdom.

Similarly, Microsoft's AI program, Copilot, is already integrating sponsored suggestions into its search results across Europe. For instance, when a user asks for advice on purchasing a coffee machine, the system might prioritize a sponsor's product, labeling it as a "supported offer" or placing it higher in the recommendations than other options. This practice extends to searches for hotels or flights, where partner offers can appear within what seems like a standard consultation.

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International market analysts predict that the generative AI services market will grow rapidly in the coming years, and technology companies are looking for ways to recoup billions in investments.

Asta Bagdonavičienė, Head of Artificial Intelligence, Data, and Analytics at Telia, notes that "International market analysts predict that the generative AI services market will grow rapidly in the coming years, and technology companies are looking for ways to recoup billions in investments." She identifies advertising, paid subscriptions, and services for business clients as primary sources for return on these investments.

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AI is a mirror reflecting the entire ocean of internet data, and in that water, commercial information has always been and always will be abundant.

While the European Union's strict General Data Protection Regulation (GDPR) influences how advertising is implemented in AI applications, Bagdonavičienė points out that AI model recommendations can still be influenced by dominant online content, widely cited sources, or actively optimized brand visibility. This has led to the rise of Generative Engine Optimization (GEO), where companies and agencies strategically populate forums, social media, and review sites with positive feedback and keywords to ensure their brands are recognized by AI models as "the best choice."

"AI is a mirror reflecting the entire ocean of internet data, and there has always been a lot of commercial information in that water," Bagdonavičienė explains. "AI models gather information from sources that marketing specialists have learned to influence. Therefore, today's consumer, asking AI for advice on services or goods, may receive advertising without even realizing it – simply presented through a perfectly formulated sentence structure."

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AI models gather information from sources that marketing specialists have learned to influence.

Bagdonavičienė draws a parallel to older, familiar systems, recalling the popular 118 information service in Lithuania. Callers seeking information, such as where to order pizza or find a car service, would often see businesses that had paid for higher placement in the database displayed first. "People naturally tend to trust authority – whether it's a pleasant operator or a well-presented recommendation," she adds, highlighting the enduring human tendency to rely on perceived authority, even when influenced by commercial interests.

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Therefore, today's consumer, asking AI for advice on services or goods, may receive advertising without even realizing it – simply presented through a perfectly formulated sentence structure.