AI Has the Audience, But Not the Ad Model Yet
By Matt Blair
Every major wave of technology has eventually found its advertising model. Search gave us Google ads. Social gave us Facebook and Instagram ads. Video gave us YouTube and TikTok ads. Today, AI is capturing attention at scale, yet it has not found its path to advertising revenue.
People spend meaningful time with AI tools each day. That is the raw ingredient that has always attracted ad dollars. The difference is that AI interactions feel different from past platforms. Users come to AI for tasks, answers, or creativity, not endless scrolling. That makes it harder to insert ads without breaking the experience.
Minutes of DAU - Source: Coatue East Meets West Keynote Deck
A Look Back: Platforms Before Ads
It is worth remembering that the giants of digital advertising did not begin with ads either.
Google launched search in 1998, but did not introduce AdWords until 2000.
Facebook started in 2004 as a social network without commercial content, only adding sponsored placements in 2007.
YouTube launched in 2005, and it took until 2007 to integrate video ads.
TikTok saw explosive growth in the late 2010s but only rolled out full ad products after building a massive user base.
The pattern is clear: attention comes first, monetization follows. AI today is simply in that pre-ad stage.
Why Ads Have Not Arrived in AI
Most AI use cases are goal-oriented, not entertainment-oriented.
There is no obvious “feed” where ads can naturally appear.
Trust is critical, and users are sensitive to the idea of sponsored results.
What Monetization Could Look Like
Sponsored results: When you ask for a product, service, or recommendation, paid options could appear alongside organic ones.
Enterprise integrations: Companies may pay to be embedded in workflows, from CRM systems to shopping platforms.
Commerce hooks: AI could drive direct purchases, taking a cut of the transaction.
Brand experiences: Companies might sponsor interactive journeys, such as planning a trip or exploring new recipes.
Likely Rollout
In the near term, we will see small experiments. Sponsored answers in travel, shopping, and productivity will test user tolerance. If adoption holds, larger ad networks will emerge. Over time, AI will likely develop its own native ad formats that feel more like recommendations and less like interruptions.
The Bottom Line
AI has already won the battle for attention. History suggests that where attention goes, advertising follows. The open question is whether AI can build an ad model that fits its unique context without losing user trust.
