Perplexity Reportedly Plans Ads for AI Search App

Embattled artificial intelligence startup Perplexity is reportedly ready to run advertisements on its search app.

The AI company is circulating a pitch deck, touting the reach and use of its app, which has been downloaded more than 2 million times and has 230 million monthly users, CNBC reported Thursday (Aug. 22), citing a presentation it saw.

The company was valued at over $1 billion following a funding round in April, marking a two-fold increase in its valuation, per the report.

However, the company’s rising popularity has put it under the spotlight, with concerns about how Perplexity sources its content, the report said. For example, reports by Forbes and Wired found evidence the company plagiarized its stories.

Since the controversy, the company has changed the way its Pages feature cited sources and made updates to properly cite sources in the copy it generates, according to the report.

PYMNTS explored the role of AI in search earlier this year, noting that observers stress the need to optimize for AI algorithms to maintain a competitive edge in the digital marketplace.

“It’s important for businesses to think of more than just pure on-page SEO optimization,” Ben Poulton, founder of the SEO agency Intellar, told PYMNTS. “AI overviews tend to try and showcase the whole experience. That means additional content, more FAQs answered, customer feedback addressed on the page, details about walking distance and return policies for brands with a brick-and-mortar, all need to be readily available, as that will give you the best shot of being featured.”

AI is transforming the way people search the web and shop online, making for a more personalized and intuitive experience, the PYMNTS report said.

“AI-powered search goes beyond simple keyword matching and can interpret the meaning and context of a query to locate the most useful information,” said Arsalan Vossough, chief technology officer and co-founder of AI-driven wine search engine VinoVoss.

By employing natural language processing, machine learning and user data, AI search tools can grasp complex queries and offer tailored results and recommendations. VinoVoss, for instance, can take a user’s description of their ideal wine — including price, taste profile and food pairing — and produce the most relevant bottles.

“The future of search will be defined by AI’s ability to understand and anticipate user needs in ways that traditional keyword-based engines simply can’t match,” Vossough predicted.

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