Perplexity Drops Advertising Plans in Major Shift, FT Says | Meyka

Perplexity has made a major change to its business strategy by abandoning its plans to run advertisements on its platform. The start-up, known for its AI search and chatbot services, decided that advertisements could harm user trust and weaken the quality of AI answers. This decision marks a strategic shift in how Perplexity aims to grow and earn revenue.

Executives at Perplexity highlighted that keeping users’ trust is central to their mission. They believe that ads, even when clearly labelled, could make users doubt the impartiality of the responses generated by the AI. This move sets Perplexity apart from some competitors that are pushing advertising models to monetize their AI tools.

Why Perplexity Is Dropping Advertising

Focus on User Trust and Accuracy

Perplexity’s leadership said that advertising could create a perceived conflict between generating accurate information and making money. They expressed concern that sponsored content might bias AI answers or lead users to question the truthfulness of results. This was a major reason for withdrawing the ad plans.

Subscription and Enterprise Plans

Instead of ads, Perplexity is strengthening business models based on paid subscriptions and enterprise sales. The company aims to appeal to professionals such as finance experts, doctors, and corporate users. This approach focuses on long-term revenue rather than quick returns from advertising.

Shifting away from ads also aligns Perplexity with…