DeepMind CEO Expresses Surprise Over OpenAI's Swift ChatGPT Ad Integration

Google DeepMind CEO Demis Hassabis expressed his surprise at OpenAI's early adoption of advertising within its AI chatbot. Speaking with Axios at Davos, the AI leader addressed the topic of monetizing AI services through ads, noting that his team at Google is evaluating the approach with considerable caution.

Hassabis added that his team is not under pressure from the tech giant to make a hasty decision regarding advertising, even though ads are central to Google's core business.

These comments from the DeepMind co-founder came after Friday's announcement that OpenAI will begin testing ads to generate additional revenue from its 800 million weekly active users who are not paid subscribers.

Although OpenAI may be considering ads due to rising infrastructure and energy costs, its decision could reshape user perception of the service.

"I'm a bit surprised they moved so quickly in that direction," Hassabis remarked, referring to OpenAI’s ad integration. "Ads aren’t inherently bad—they've supported much of the consumer internet. When executed well, they can be helpful," he explained.

"But when it comes to AI assistants—tools designed to be genuinely helpful and, ideally, to work for you as an individual—there’s a question of how ads fit into that model. Trust in your assistant is essential, so how does advertising align with that?" he continued.

Reiterating earlier remarks from another Davos interview, Hassabis confirmed that Google currently has no plans to introduce ads in its AI chatbot. Instead, the company will observe user reactions before making any decisions.

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We've already seen user backlash against the idea of ads appearing in conversations with AI assistants. For example, when OpenAI recently tested a feature that recommended apps during user chats, the response was negative—many felt the suggestions were intrusive ads. OpenAI soon disabled the feature, clarifying that the recommendations were not ads because they had "no financial component."

However, user frustration wasn't about whether money changed hands, but rather how the app suggestions diminished the user experience.

This is also a concern for Hassabis, as his comments indicate.

He explained that interacting with a chatbot differs significantly from using Google Search. With Search, user intent is clear, making relevant ads useful. In contrast, chatbots are evolving into personalized digital assistants that understand users and assist with various aspects of their lives.

"That’s very different from the search use case, so it requires careful consideration," he added.

Enhancing Gemini's usefulness for individual users is also the goal of new personalization features introduced today for Google’s AI Mode. Users can now opt in to allow Gemini’s AI to access their Gmail and Photos for tailored responses in Search’s AI Mode, similar to the recently added Personal Intelligence feature in the Gemini app, which references users’ Gmail, Photos, Search, and YouTube history.

While personalized ad targeting sustains much of the free web, introducing ads during conversations with an AI assistant can feel disruptive. This is why customers rejected Amazon's earlier attempts to include ads in its Alexa experience—they wanted an assistant, not a personal shopper promoting products.

Hassabis stated that he is not under pressure to incorporate ads into the AI product, though he acknowledged that there might be a suitable way to do so in the future.

"We don’t feel any immediate pressure to make rushed decisions—that has always been our approach at DeepMind. We take a scientific, rigorous, and thoughtful approach to every step, whether in technology development or product design," he noted.