Evan Armstrong from Every delves into how AI is disrupting advertising, potentially reducing ad serving and browsing time, impacting internet revenue. He predicts a new techno-economic paradigm for the internet as AI reshapes user interactions and revenue generation.
AI will reshape online advertising methods and timing, impacting revenue for internet businesses.
Ads play a vital role in monetizing user actions, but AI advancements pose challenges for traditional ad models.
Deep dives
AI's Impact on Advertising and the Internet
AI is poised to revolutionize ads and the internet, reshaping how advertising is integrated and accessed online. While ads may not disappear, the methods and timing of encountering them will evolve. Free services that leverage user interactions to enhance ad targeting create a growth flywheel, exemplified by platforms like Google and Facebook. Ads, despite criticisms for intrusiveness, play a vital role in monetizing user actions rather than users themselves, driving a significant portion of the economy.
Implications of AI on Tasks and Internet Economy
The advancement of AI in tasks and answer engines poses challenges for the traditional ad model. AI's ability to streamline tasks such as reservation bookings through AI agents raises concerns for websites reliant on ad revenue. While AI may enhance user experiences and efficiency online, it could lead to a reduction in ad-driven services and revenue, impacting the broader internet economy. The transition to an AI-driven internet introduces uncertainties in economic dynamics and content accessibility, hinting at a transformative yet ambiguous future.
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The Transformative Impact of AI on Advertising and the Internet
Ads subsidize our entire information ecosystem, keeping content free and accessible for everyone. AI may change all that by reducing both the amount of ads being served and the amount of time that people spend browsing—a one-two punch that will be devastating for the revenue of internet-reliant businesses.
In this essay, Every lead writer Evan Armstrong argues that the result will be an entirely new techno-economic paradigm for the internet.
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