“Incredibly slimy salesman:” three scenarios for ChatGPT ads

The “enshittification” of ChatGPT with advertising is likely inevitable, and these ads may be like nothing you have ever seen before.

The latest ChatGPT for Android app includes hidden code that refers to ad features, as spotted by engineer Tibor Blaho. The discovery has fueled rumors that ChatGPT may soon roll out ads.

Sam Altman, CEO of OpenAI, once described the blend of artificial intelligence (AI) and ads as “uniquely unsettling” and “the last resort” for businesses.

Nevertheless, OpenAI has recently taken multiple steps in this direction, including the Instant Checkout function, which allows users to buy directly from merchants like Etsy and Walmart. Just last month, it introduced shopping research in ChatGPT.

Some critics say the introduction of ads would lead to ChatGPT’s “enshittification.” A term coined by author Cory Doctorow that describes the gradual deterioration of online platforms, with advertising playing a significant role in the process.

The ad rollout seems to be paused for now, as Altman announced the “code red” at OpenAI to improve ChatGPT, which faces intense competition from rivals like Google’s Gemini.

However, despite ChatGPT having 800 million weekly active users, OpenAI is projected to remain unprofitable by 2030, so the introduction of ads sooner or later seems inevitable.

Three scenarios for ChatGPT ads

Nick Turley, the head of ChatGPT, has previously said that ads on the chatbot should be “thoughtful and tasteful,” as getting the best answer without another stakeholder in the middle is what makes ChatGPT magical. However, this may be easier said than done.

Iliya Rybchin, founder and principal at AI consulting firm Vorpal Hedge, says there are three potential models for ChatGPT ads.

The evolutionary model would involve contextual ads, such as banners or sponsored links, based on the immediate conversation and prior chats. For example, a user planning a trip to Italy may see ads for airlines, hotels, and tours.

Data from Microsoft Copilot shows that conversational AI ads drive 73% higher click-through rates and 16% stronger conversion rates, while also reducing customer journeys.

According to Rybchin, the ethically complex revolutionary model would weave sponsored content directly into AI-generated answers. For example, when a user looks for the 15 best marketing agencies, the chatbot could include the one it is sponsored by.

He says a softer version of the model is employed on major media sites, providing product reviews. While the user experience may feel editorial, every product either pays for inclusion or generates affiliate revenue. However, sponsored content is clearly marked.

The scary model, as defined by Rybchin, involves blending sponsored content into the advisory voice of ChatGPT. Unlike static search ads, conversational ads can adapt in real-time: answer objections, sweeten offers, and keep users engaged in the dialogue.

He tells Cybernews, “Your ChatGPT window effectively turns into a very polite, very patient, but incredibly slimy used car salesman who doesn't take no for an answer and who won't let you leave the lot.”

However, Rybchin doubts OpenAI would fully implement the model, as it would breach users’ trust and draw regulators’ attention.

“Extremely tailored and relevant”

For some, ChatGPT is no longer just an assistant – the chatbot is a romantic partner, a friend, and a therapist.

Even if the most dystopian scenario for ChatGPT ads is unlikely, having so much personal and even deeply intimate information of its users, the chatbot holds the potential to become a highly convincing ad tool.

While most digital platforms know what users clicked, ChatGPT knows what they’re trying to accomplish, according to Gilad Bechar, co-founder and CEO at Moburst.

“The ads could be incredibly convincing because they’re not just targeted – they’re situational. They address your needs in the exact moment you have them. If the ad is extremely tailored and relevant, users won’t see it as intrusive,” he says.

Sixty-one percent of American consumers have already used AI to help them shop online, and many trust the technology more than their friends, according to Bloomreach survey data.

As of now, it is only a guess what users’ reception of ChatGPT ads will be. However, there’s data suggesting that ads may reduce user engagement and satisfaction.

Your ChatGPT window effectively turns into a very polite, very patient, but incredibly slimy used car salesman who doesn't take no for an answer and who won't let you leave the lot.

Iliya Rybchin

Nearly nine in ten (86%) people say too many ads on a webpage makes them feel overwhelmed and more likely to ignore the adverts, according to a 2023 YouGov/Picnic survey.

At the same time, OpenAI is facing multiple lawsuits over allegedly pushing people into suicide, allegations the company denies.

Vaclav Vincalek, founder of the AI-powered search platform Hiswai, says that if a chatbot can assist someone with taking their own life, the technology can easily convince users to buy something.

​He tells Cybernews, “It doesn’t need to tell you what to buy. It will create a context where you will freely and happily click the buy button. Once you buy, it will provide positive reinforcement that you made the right choice.”

What ChatGPT ads could look like and when they could be introduced remains a matter of speculation.

One thing, however, is clear – OpenAI’s push for commercialization will draw criticism, given the company was created as a non-profit with a purpose to build a general AI for the greater good.

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