Perplexity will phase out ads introduced in 2024 from the end of 2025, with no plans to continue doing so in the future due to the risk of undermining trust in AI.

AI search engine Perplexity began experimenting with advertising in November 2024. However, the Financial Times reports that the company will phase out advertising from the end of 2025, citing concerns that it could undermine users' trust in AI.

Perplexity drops advertising as it warns it will hurt trust in AI
https://www.ft.com/content/6eec07a5-34a8-4f78-a9ed-93ab4263d43c

On November 12, 2024, Perplexity announced that it would be experimenting with advertising, saying, 'To fully fulfill our mission of inspiring the world's curiosity, we need to invest in strong, sustainable businesses, not just beloved products. That's why, starting this week, we're experimenting with introducing advertising to Perplexity.'

Perplexity explained the reason for running ads: 'Our advertising program helps us generate revenue for revenue sharing with our publisher partners. Experience has shown that subscriptions alone do not generate enough revenue to create a sustainable revenue sharing program. Especially as our publisher program grows rapidly, advertising is the best way to ensure a stable and scalable revenue stream.'

Why we're experimenting with advertising
https://www.perplexity.ai/en/hub/blog/why-we-re-experimenting-with-advertising

However, Perplexity has revealed that it is phasing out advertising due to concerns that it could undermine trust in its AI. A Perplexity executive told the Financial Times, 'If we want users to continue using our product and be willing to pay for it, we have to believe that removing ads is the best answer.'

Perplexity's ads are labeled 'sponsored,' making it easy to distinguish them from non-advertising content. Additionally, the company explains that ads do not influence the output of its AI in any way. However, when asked why Perplexity decided to eliminate ads, an executive said, 'The challenge with advertising is that it makes users suspicious of everything. That's why we don't think it's beneficial to focus on advertising at this time.'

To secure revenue streams, many AI companies are exploring integrating AI tools with advertising. While Google has ruled out the possibility of placing ads on its generative AI, Gemini , it already places ads on its search engine's AI features, AI Mode and AI Overview .

OpenAI also began testing advertising on ChatGPT in January 2026.

OpenAI officially launches 'ChatGPT Go,' a cheaper paid plan for 1,500 yen per month, and also starts testing to display ads - GIGAZINE

On the other hand, some AI companies, like Perplexity, are distancing themselves from advertising. For example, Anthropic, the developer of Claude, has stated that it will not include ads in Claude, in a move that sarcastically criticizes OpenAI, which has begun running ads.

AI company Anthropic releases Super Bowl commercial stating, 'This is what happens when you use advertising on AI,' and OpenAI's Sam Altman responds in a lengthy response - GIGAZINE

Perplexity, one of the first to start advertising, reportedly generates around $200 million in annual revenue, the vast majority of which comes from paid subscriptions, the Financial Times noted. A Perplexity executive, speaking to the Financial Times, said the service has more than 100 million users.

'We're in the business of accuracy, providing users with truthful and accurate answers,' said an anonymous executive. While the company may reconsider advertising in the future, it explained that it had decided to abolish it at the time of writing, citing its lack of alignment with what users want. Furthermore, the executive added, 'We may no longer need to advertise,' suggesting the company may continue to offer its service without ads.