Musk Plans to Add Ads to Grok’s AI Responses

Elon Musk has revealed intentions to add advertising to the responses produced by Grok during a live conversation on Wednesday that that Grok’s comments will now have advertisements, according to the Financial Times. After former CEO Linda Yaccarino left, the move would aid X’s faltering advertising sector.

According to the billionaire businessman, advertisements that promote goods and services that provide a “specific solution” to a problem can appear when customers question the chatbot about it.

The platform’s AI chatbot, in what may be interpreted as an attempt to profit from X’s AI features. According to a report, Musk is now directly in charge of the company’s advertising division, which has a new direction as a result of the resignation of former CEO Linda Yaccarino.

In a live broadcast discussion with advertisers, Musk reportedly said that marketers would soon be able to pay for their goods or services to show up alongside Grok’s answers, according to the Financial Times. “That opportunity will be in Grok’s suggestions,” Musk stated in a livestream on X.

“Advertising the precise solution would be ideal at that point if a user is attempting to solve a problem by asking Grok,” he clarified.

Musk stated during the show, “Up until now, we have only focused on making Grok the smartest, most accurate AI in the world, and I think we’ve largely succeeded in that.” He said that this change is required to assist in covering the price of the graphics processing units (GPUs) or chips needed to run AI applications also too AI will transform X’s ad targeting and delivery that drive Grok.

Musk assured advertisers that X will let them purchase the right to show up in the AI chatbot’s recommendations. He did not specify when Grok’s recommendations will include advertisements.

The businessman also intends to enhance the targeting of social network advertisements by utilising technologies from xAI, his AI startup. Earlier this year, xAI paid $45 billion to buy X. Since then, the two businesses have grown closer.

Additionally, Musk stated that advertisements on X will need to adhere to certain minimal aesthetic standards.

“We’re not saying that an ad has to be a complete work of art, but it can’t be an eyesore,” Musk stated.

Musk also laid out more comprehensive ambitions to use xAI’s technology to revolutionise X’s advertising system. The objective is to greatly enhance ad targeting and automate the advertising process for brands. This endeavour follows reports that X’s ad tech team had trouble successfully reaching its target demographic.

The announcement is made as X continues to come under fire from certain sponsors for their problems with content control. Grok recently generated antisemitic and pro-Hitler content, which sparked uproar and raised questions about the AI’s safety measures.

Some advertisers received an email from X highlighting recent enhancements to its ad auctions, which included a 40% increase in online ad conversions and a 7% quarterly drop in average advertising expenses.

Additionally, Musk’s direct interactions with marketers solidify his position as X’s public spokesperson. His comeback comes after Linda Yaccarino, who frequently acted as a go-between for Musk and marketers, left in July.

A month after X CEO Linda Yaccarino resigned, the appeal to advertisers was made. The advertising industry hailed Yaccarino’s appointment in 2023 as a wise decision, but following a series of content moderation scandals on X, she soon found herself battling to keep advertisers from abandoning the platform.

In recent months, Grok has also been the subject of controversy. xAI apologised after the chatbot made offensive remarks on X, including jokes that were antisemitic and praise for Adolf Hitler, due to a new set of instructions.

“Elon and the X team made clear our continued commitment to brand safety,” a representative for X said to Business Insider. “This holds true across all current and future ad placements.”