Perplexity, an AI-driven search engine, is starting to test a new advertising program this week, marking a significant step in monetizing its platform. This experiment will begin in the U.S. with ads appearing as “sponsored follow-up questions” next to the AI-generated answers users receive. For example, a sponsored question might read, “How can I use Indeed to enhance my job search?” These ads will be clearly labeled as “sponsored” but will not influence the content of the answers provided by Perplexity’s AI.

The move into advertising comes as Perplexity faces growing pressure to diversify its revenue streams beyond its premium subscription service, Perplexity Pro, which charges $20 per month for additional features. Despite having 100 million search queries per week, the company has found that subscriptions alone aren’t enough to sustain a profitable business model. To address this, it has partnered with brands like Indeed, Whole Foods, and Universal McCann.

The ads will be contextually integrated into the flow of AI responses, allowing brands to place their messages where they’re most relevant to the conversation without directly manipulating the AI’s answers. This setup differentiates Perplexity from more traditional search engines like Google, where ads are primarily linked to search results.

While this model has the potential to bring in steady revenue, it also faces challenges. For one, Perplexity’s approach to handling advertising without compromising the accuracy or utility of its answers will be closely watched. Additionally, the platform has faced legal challenges regarding copyright infringement, as some publishers claim Perplexity uses their content without permission.

Updated 5:47 am ET: The article has been updated to include an image showing how Perplexity’s sponsored ad label appears. No further changes were made to the article.