Observed Signal · Apr 25, 2023 · Analysis · Source: CMSWire · Impact: 2/5 · Sentiment: Neutral

How AI Chatbots Will Make Money Outside of Ads

Executive Signal Summary

The article argues that AI chatbots like ChatGPT will not primarily rely on advertising for revenue. Instead, APIs, plugins, subscriptions, and data licensing are more natural monetization methods. Ads disrupt the conversational experience, as exemplified by Bing's limited ad trials and OpenAI's stated lack of plans for ads. ChatGPT Plus subscription at $20/month shows user willingness to pay. Companies like Kayak are building plugins to integrate services into chatbots. Data licensing is flagged as a potential scandal. The article concludes that ads may fade into the background as these alternative revenue streams take hold.

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High Confidence

Discusses alternative revenue models for AI chatbots, impacting the future of advertising in conversational AI.

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Key Takeaways & Evidence Grounding

  • ChatGPT reached 100 million users within two months of launch.
  • OpenAI introduced ChatGPT Plus, a $20 per month subscription for access to GPT-4.
  • Microsoft's Bing chatbot has run limited advertising.
  • OpenAI stated it has no plans to put ads in ChatGPT.
  • Kayak is developing a plugin for ChatGPT to help users find flight information.

Connected Companies & Entities

3 Entities mapped

“Google declined to comment on whether it intends to put ads in Bard....”

Primary Source Grounding & Direct Attribution
Direct Origin Attribution
Primary Reporting: CMSWire•Published: Apr 25, 2023

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