The news: Perplexity is fully stepping away from in-chat advertising over concerns that ads risk eroding user confidence in AI-generated answers. The company is focusing on monetization through subscriptions and enterprise sales, prioritizing paying users over growth metrics like total queries answered.

A Perplexity executive said even clearly labeled ads could cause users to question objectivity. “A user needs to believe this is the best possible answer to keep using the product and be willing to pay for it. The challenge with ads is that a user would just start doubting everything … which is why we don’t see it as a fruitful thing to focus on right now,” the executive told The Financial Times.

Zooming out: Perplexity was among the first genAI startups to trial ads in 2024.

• It hired an ad chief in late 2024, but that initiative lost steam and the executive leading it departed within nine months, per Adweek.
• In October 2025, the genAI company said it was no longer taking on new advertisers amid struggles to monetize AI search.
• Perplexity is now suggesting it may never need to rely on advertising, per The FT, as it generates most of its revenues from subscriptions.

Perplexity is likely responding to consumer concerns around ads: 63% of US adults say ads in AI search results make them trust the results less, per Ipsos. Less than one-quarter say these ads have the opposite effect.

Why it matters: Perplexity’s retreat from ads highlights the diverging strategies and philosophies toward ads among AI firms.

• OpenAI is rolling out sponsored links in ChatGPT to translate widespread personal chatbot use into a more lucrative business model.
• Google allows advertisers to surface targeted offers in its Gemini-powered AI Mode but has disputed claims that ads will be shown in Gemini itself in 2026.
• Anthropic has committed to keeping Claude ad-free. It even ran Super Bowl ads that contrasted its stance with OpenAI’s, helping the comparably smaller platform gain an 11% boost in daily active users post-game, per BNP Paribas data cited by CNBC.

Recommendations for marketers: Even as major players like ChatGPT explore ad monetization, ads in AI search are incredibly nascent, and there’s a lack of significant proof that the format is effective. Investment should only be considered for platforms with proven ROI and a strong commitment to transparency to curb user concerns.

• Don’t assume paid placements in AI answers will be a durable strategy as some AI platforms deprioritize advertising over subscriptions and enterprise revenues.
• Do focus on building trust and authority in online content to boost the chances of appearing naturally in AI engine results.