The AI-powered search engine Perplexity has reversed its plan to introduce advertisements into its conversational responses, a decision that signals a broader strategic pivot. The company initially tested ads as a potential revenue stream but faced significant user backlash, leading to a swift retreat. This move highlights the unique challenges AI-native companies face in monetizing their services without disrupting the user experience that distinguishes them from traditional search engines like Google. Instead of ads, Perplexity appears to be focusing on its recently launched enterprise subscription tier, Perplexity Enterprise, as its primary growth and revenue model. This shift underscores the ongoing experimentation within the AI search sector to find sustainable business models that align with user expectations for clean, ad-free interactions. Read the full article at: https://www.wired.com/story/perplexity-ads-shift-search-google/