The viral, new AI chatbot created by OpenAI called ChatGPT could be a threat to Google's ad business, according to Sridhar Ramaswamy, a former Google executive who led Google's ad team from 2013-2018.
Why? He said that ChatGPT could impact Google's business model by obviating the need for users to click on links with ads. "The goal of Google search is to get you to click on links, ideally ads, and all other text on the page is just filler."
Google’s ad business generated around $208B or 81% of Alphabet's overall revenue in 2021, per Bloomberg.
Better user experience. Instead of the links you want surrounded by ads, ChatGPT delivers a single answer in a conversational and more human-like way – all the while collating information from millions of URLs.
"It's just a better experience," Ramaswamy told Bloomberg.
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