Helplessness AIa billion-dollar artificial intelligence search startup, is reportedly preparing to monetize its platform through Show in the fourth quarter.

This move comes as AI-powered search engines increasingly impact e-commerce, potentially changing the way consumers discover products and companies allocate their marketing budgets in the digital marketplace.

The startup’s entry into advertising was followed by a meteoric rise. confusion reported millions of app downloads. This growth has attracted investor interest. with the valuation of the company doubling to over $1 billion in a financing round in April.

Caitlin HalpertVice President of Growth at a performance marketing agency Travel furthertold PYMNTS that platforms like Perplexity could seamlessly integrate ads without compromising the user experience.

“I can imagine the ads fitting in well with the way the platform works today,” Halpert said, suggesting that ads could appear alongside source documents in Perplexity’s interface.

However, Halpert warned of possible difficulties.

“The biggest challenge will likely be to ensure that users can clearly distinguish between ads and legitimate sources, thus maintaining the integrity of the search process,” she said.

The introduction of advertising on AI search platforms could change the competition in the digital ad market. Halpert advised marketers to adapt their strategies, stressing the need to “prioritize earned media coverage and create content that resonates with users rather than just optimizing for algorithms.”

A new frontier in AI-powered advertising

The company’s entry into advertising represents a shift in the AI ​​search landscape. Perplexity has gained popularity because of its ability to provide precise, synthesized answers to user queries, a feature that sets it apart from traditional search engines.

However, the company’s rise was the subject of controversy. Major media outlets accused the company of plagiarismwhich raises questions about content ownership and fair use in the AI ​​age. The company has adapted its citation practices and introduced a Revenue sharing model for publishers.

Some industry experts drew parallels to existing search engines.

“Advertising pollutes the organic information order and turns search results into a carnival of distractions,” CUDO Calculate Head of Marketing Lars Nyman said PYMNTS.”Google has been selling objectivity for years by, roughly speaking, auctioning off the best properties at the top of the search results to the highest bidder.”

Market disruptions

Some observers said they saw risks in the rise of AI search.

“Once advertising becomes a revenue model, there is a risk that the platform will prioritize content that generates higher advertising revenue over purely relevant or accurate results,” Ross KernezFounder of SEO consulting company Rossk.comsaid PYMNTS.

The introduction of advertising on AI-powered search platforms also raises privacy concerns.

“AI search platforms process and analyze massive amounts of data from user queries, which often contain sensitive or personal information,” Kernez said. “The introduction of targeted advertising raises new privacy concerns, particularly around how this data might be used or shared.”

Data analysis could go deeper than with traditional search engines.

“Traditional search engines already infer user intent based on obvious data like previous searches and website visits. But AI can go a step further and not only infer that you are interested in buying a car, but also recognize your environmental concerns, your preference for electric vehicles and your penchant for weekend getaways,” Nyman explains.

Such insights could lead to what Nyman described as “hyper-targeted advertising that feels almost intrusive, like a salesperson whispering your deepest desires in your ear.”

The consequences go beyond simple search queries and can potentially reveal intimate details about users’ personalities and preferences.

The entry of AI-supported platforms into the advertising market could also change the competitive environment.

“Traditional search engines and social media platforms will feel the pressure as AI-driven platforms offer advertisers a more nuanced and precise way to reach consumers,” Nyman predicted.

Industry observers expect a possible change in marketing strategies.

“If AI search platforms succeed in capturing a significant share of the advertising market, it could lead to a reorientation of marketing budgets away from traditional search engines and social media and toward these new platforms,” Kernez said.

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