Perplexity phases out ads on its AI search platform

Perplexity has phased out ads on its AI search platform, saying ads clash with its focus on delivering answers users can trust. According to the Financial Times, executives at the AI search company say ads have been halted and that there are currently no plans to pursue them further. Perplexity started phasing out these placements late last year, the report said.

From sponsored answers to subscription-first

Perplexity began experimenting with sponsored answers in 2024. The ads appeared beneath chatbot responses and were clearly labeled “sponsored.” The company says they were placed in a way that did not affect the AI’s outputs. Still, executives believe that even if ads are separated from answers, their presence can make users question whether commercial relationships shape what they see.

One executive told the FT 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.” Another described Perplexity as being “in the accuracy business,” adding that ads are “misaligned with what users want.”

Instead of ads, Perplexity relies mainly on subscriptions. The company offers paid tiers ranging from about $20 per month to roughly $200 per month, alongside a free version. Paid plans include higher usage limits and additional features designed for professionals and power users.

“A user needs to believe this is the best possible answer, to keep using the product and be willing to pay for it,” a Perplexity executive told the FT.

A different path from other AI platforms

Perplexity is prioritizing direct user revenue over ad-supported scale, betting that trust will translate into long-term subscriber growth. However, this stance differs from big players like OpenAI and Google AI search. OpenAI has begun testing advertisements in ChatGPT for free-tier users. Google already runs ads in AI Mode and AI Overviews within traditional search results, but the company has denied plans to introduce ads into Gemini.

Anthropic has publicly committed to keeping its chatbot, Claude, ad-free. The company recently ran Super Bowl ads highlighting Claude’s ad-free promise. The commercials aired under the theme “Ads are coming to AI. But not to Claude” and depicted ads interrupting chatbot conversations. 

Anthropic maintains that ads have “no place” in personal AI chats. This position aligns closely with Perplexity’s view that ads could undermine users’ confidence in AI chatbot impartiality.