By FP Tech Desk
Publication Date: 2026-02-20 06:50:00
In a striking reversal, AI startup Perplexity has decided to ditch plans for advertisements in its chatbot, saying that introducing ads could undermine user confidence.
The company, which once led the way in testing sponsored responses, now insists that maintaining credibility outweighs short-term revenue gains.
The move sets Perplexity apart in an industry increasingly turning to ad-driven monetisation to offset soaring AI infrastructure costs. According to The Financial Times, the firm quietly began phasing out ads late last year and has now confirmed there are no immediate plans to bring them back.
Trust over monetisation
Perplexity was among the first AI companies to explore advertising, introducing sponsored placements below chatbot responses in 2024. But executives now say that even clearly labelled promotions risk corroding the perception of objectivity that underpins user trust.
“A user needs to believe this is the best possible answer to keep using the product and be willing to pay for it,” a company executive told the FT. Another added that “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 firm’s leaders emphasised that Perplexity’s…
