AI chatbots are quietly inserting ads into conversations, and most users don't notice—Microsoft, Google, and OpenAI are already doing it

Microsoft started running ads in Bing Chat (now Copilot) in 2023; Google, OpenAI, and Meta have since experimented with ads in their own chatbots. OpenAI hired Meta's advertising executive Dave Dugan in late March to lead its advertising operations, signaling serious commitment to monetization.

Researchers found that when chatbots weave product recommendations into answers without clear labeling, half of users don't notice the ads are there—yet many still say they prefer the ad-filled responses and claim the chatbot influenced their purchasing decisions, even though the ads made the chatbot 3–4% worse at its core tasks.

Unlike social media algorithms that simply show you ads based on your search history, chatbots can extract much richer personal data from a single conversation (whether you're a student, working parent, or have specific vulnerabilities) and use psychology to persuade you directly—a level of manipulation that regulators are beginning to flag as concerning.