The R Street Institute said on March 16 that restricting advertising for artificial intelligence (AI) platforms and services would be a mistake, arguing that ad-supported options give consumers more choices.
The discussion comes as some groups call for preemptive limits on ads for AI services, especially after reports that OpenAI is considering offering an advertising-supported version of ChatGPT. The institute noted that companies like Anthropic have criticized ad-supported models, but pointed out that such criticism may come from firms without significant consumer-facing businesses.
According to the statement, digital advertising has enabled widespread access to online communications and research tools at little or no cost to users. The institute said, “76 percent of small businesses report that losing online advertising would harm their ability to effectively market their products and services and to grow their business.” It also highlighted the large investments tech companies make in infrastructure—over $100 billion annually in recent years—and suggested these investments are often funded by advertising revenue rather than direct consumer payments.
The R Street Institute argued that if ads are discouraged or banned, paywalls for AI services could become higher and more expensive, reducing accessibility for many people. The statement said, “Ads shifts these costs away from consumers and toward businesses who want to reach them. If ads are discouraged or disallowed for the internet or AI service, the paywalls will just get higher, tighter, and a lot more expensive.”
The institute also acknowledged the value of paywalls and subscription models but emphasized the importance of maintaining a variety of business models so consumers can choose what works best for them. It concluded by saying, “AI businesses should be free to compete with different business models to see what consumers prefer. Indeed, the development of new ad-supported AI business models shows that we have a healthy, competitive and innovative AI ecosystem. It is yet another sign of continued U.S. AI leadership. Bring on the ads.”
