
What About Business Models?
In the first part of this article series, “Search Tools in a GPT World,” we looked at Search Tools in a product environment where AI GPTs are clearly on a tear. Now we’ll look at how technology and consumer sentiment shifts are impacting economics and business models.
The rise of GPTs introduces significant shifts in business models underpinning search and information retrieval. Search engines operate primarily on ad-driven models, based on traffic, clicks, and ranking. This impacts income to both search engines and the publishers to whom they drive traffic. We’re going to focus on the search engines themselves. In contrast to traditional search, GPTs seem mostly out of the starting gate with pay-per-use, subscription, or freemium models. This may be a reflection of the resource-intensive nature of generating real-time responses. It’s a simpler business model than search, which depends on a complex ad services ecosystem. As well, ads alone might not be sensible from a P&L perspective. Let’s review some of the business models.
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