AI Company Announces Ads Will Be Embedded in Chatbots

A 3d graphic of a blue digital bag of money marked by a dollar sign, hovering over on circuit board

OpenAI has officially announced plans to integrate advertisements into ChatGPT, marking a significant shift in the business model of the world’s most prominent generative AI platform. While the company frames this move as a means to expand access for free users, the decision raises critical questions for higher education about data privacy, research integrity, and the digital divide.

OpenAI’s new “Go” tier, at a prescription rate of $8 per month, as well as the standard free version will soon feature sponsored content, the company announced. Higher-priced tiers like Plus, Team, and Enterprise will remain ad-free. For universities like UMA, this creates a tiered experience: students, faculty and staff who can afford premium subscriptions will have access to more robust tools, while those on free or low-cost tiers may encounter commercial influence. The ads will appear at the bottom of responses when OPenAI identifies a “relevant sponsored product” based on the conversation.

OpenAI maintains an “Answer Independence” principle, asserting that ads will never influence the core response. However, critics like Cory Doctorow point to the “enshittification” of search engines, where sponsored content eventually crowds out organic results, as a warning. 

A New York Times piece covering the announcement cited the company’s wider campaign to increase revenue as a factor in the decision, as it considers a public stock offering.

Leon Furze, a prominent voice on AI in education, characterizes OpenAI’s pivot toward advertising as the “freemium model of enshittification that every tech since social media has followed as doctrine.” He  warns that ChatGPT holds a “significant advantage|” over social media predecessors, because users do not just have their data inferred from digital behaviors like swipes and likes, they “simply tell it” their most personal medical, financial, and academic details, which can then be used to target them with “unprecedented precision.”

In a research context, the concern is whether a student seeking, for example, reliable sources on climate change might eventually see sponsored white papers or corporate-backed studies prioritized over peer-reviewed academic journals.

As OpenAI moves toward a multi-billion dollar advertising revenue model, faculty might consider how “sponsored conversations” affect student information literacy. The shift emphasizes the need for students to distinguish between synthesized AI knowledge and commercial persuasion. Google, and by extension Gemini and NotebookLM, the tools provided to signed-on UMS community members as part of the Google Workspace for Education agreement, is not currently courting a sponsored chatbot revenue model.

Read more from Leon Furze in his post: “Should We Care?”