Perplexity AI, the AI-powered search engine, has reversed its recent decision to introduce search ads into its interface. The company initially tested placing small, labeled ads at the bottom of some search results but faced significant user backlash, leading to the quick removal of the feature. This retreat highlights the unique challenges AI-native companies face in monetizing their services without disrupting the user experience that differentiates them from traditional search engines like Google. The incident suggests Perplexity is prioritizing user growth and satisfaction over immediate ad revenue, a strategic choice as it positions itself as a cleaner, more conversational alternative in the competitive search market. The company’s CEO indicated the focus remains on building a superior product, with future monetization strategies needing to align closely with core user expectations. Read the full article: https://www.wired.com/story/perplexity-ads-shift-search-google/