ChatGPT faces backlash over recommending brands in chat

For an assistant built on trust, it is hard to distinguish between the notions of a “helpful suggestion” and “commercial nudge.” A single brand mentioned out of context is sufficient to color how users interpret the rest of the conversation.

This played out in early December when paid users of ChatGPT began posting screenshots containing mid-conversation prompts that seemed to point users towards brands such as Peloton and Target. Of course, this created rumors on various platforms that OpenAI was now embedding ads even for paid plans.

OpenAI’s Head of ChatGPT, Nick Turley, replied that there are no live ad tests in ChatGPT at this time, and all screenshots being shared were either non-ad content or were being incorrectly interpreted.

Soon after, the tone of OpenAI changed from denial to cleanup. The company’s Chief Research Officer, Mark Chen, acknowledged the potential ad-like feeling and said they “fell short.” He then clarified that OpenAI turned off this type of suggestion while enhancing model precision and developing more user controls.

The most likely explanation is simpler than ads. The impression was that users were being shown a function of ChatGPT pointing to brand-related GPTs or chat app experiences instead of being promoted through advertising. In other words, the model may have been well-intentioned and pointed to something such as a “Target GPT” or “Peloton GPT” at the wrong time. When relevance is off, product discovery can feel indistinguishable from advertising.

However, this was not the only time. From the previous Black Friday and Cyber Week sales event, which saw the use of AI-based shopping and chat assistants increase sales to a record online spend, one can safely assume that users were on high alert for anything that looked like AI-driven selling inside chat.

And outside reporting seems to confirm that OpenAI has reason to tread carefully at this moment. Reports pointed out that Sam Altman implemented a “code red” within the company to give more attention to developing ChatGPT and postpone other initiatives such as advertising.

For users, the message is simple. OpenAI is not saying that advertising is here to stay. It is admitting that the product experience appeared all too similar to it. In the short run, the implication is that the company is placing greater emphasis on trust-building than on aggressive monetization.