"Philipp Schindler stated that if Google finds an ad format that works well in AI Mode, the same idea could eventually be used in the Gemini app. Ads have helped Google scale products to billions of users before, as long as they are useful and shown at the right moment."
"The push toward ads ultimately comes down to cost. AI chatbots need expensive computing power every time they generate a response, especially at the scale of hundreds of millions of free users. Ads provide another way to fund free access without locking features behind a paid plan."
"Google's slow approach makes sense, since even OpenAI is still working through the tricky parts of putting ads inside chatbots. Tracking ad performance in an AI chatbot could be harder than in regular Search, where user intent is clearer."
OpenAI is testing ads in ChatGPT, prompting AI companies to explore advertising in chatbots. Google is cautious about introducing ads in its Gemini app, focusing on free tiers and subscriptions first. Chief Business Officer Philipp Schindler indicated that if a successful ad format is identified in AI Mode, it could be applied to Gemini. The push for ads stems from the high costs of operating AI chatbots, which require significant computing power. Google is proceeding carefully due to the complexities of ad performance tracking in chatbots.
Read at Digital Trends
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