ChatGPT Now Has Ads: What Businesses Need to Know

OpenAI has quietly but significantly updated its Privacy Policy to allow advertising within ChatGPT, signalling a shift in how one of the most widely used AI tools is monetised. For businesses, brand owners and professional advisers, this change raises important considerations around risk, brand protection and decision‑making.

ChatGPT operates at a significant global scale, with around 800 million active weekly users worldwide and rapidly growing adoption in Australia. OpenAI has confirmed that Australian usage has more than doubled in the past 12 months.

While advertising is currently being rolled out on a limited basis, this expansion positions ChatGPT as an increasingly influential platform in how businesses and consumers access information.

What ChatGPT advertising means for businesses

Under the updated policy, advertisements may appear on ChatGPT’s Free and Go plans, while paid tiers (Pro, Business, Enterprise and Education) remain ad‑free. Sponsored content is described as being clearly labelled and visually separate from organic responses. OpenAI also states that ads do not influence the answers ChatGPT generates. Personal conversations and user data are not shared with advertisers, who receive only aggregated performance information such as views or clicks.

While these safeguards matter, the broader issue for businesses is not simply privacy but how advertising integrates into a conversational AI environment that many people already treat as a trusted source of information.

Why ChatGPT is introducing ads

ChatGPT is increasingly used by businesses and consumers for product research, supplier comparisons, marketing ideas, legal or compliance queries and brand discovery. Introducing advertising into that experience changes the practical context in which information is consumed.

Even where sponsored content is clearly labelled, its placement alongside AI‑generated responses means users may encounter brand names, products or services in circumstances that feel closer to “advice” than traditional advertising. This matters for both users relying on free tools and businesses whose brands may appear in, or be affected by, sponsored content.

The result is a mixed environment of organic AI output and paid promotion: one that requires greater scrutiny from users and more vigilance from brand owners.

Advertising in ChatGPT: Risks for businesses using free AI tools

For businesses that rely on free versions of AI tools, this development reinforces the need for internal guardrails around how those tools are used. Sponsored content may shape commercial judgments in subtle ways, particularly where prompts relate to:

• recommended suppliers or competitors;
• “best” products or services in a category;
• comparative pricing or features; and
• market positioning or brand awareness.

While ChatGPT asserts that advertising does not influence its answers, sponsored content may still affect perception and decision‑making, particularly for less experienced users. Businesses should ensure staff understand the distinction between organic responses and paid placements and treat outputs as an input, not a substitute, for independent assessment.

Beyond internal decision‑making risks, advertising in ChatGPT also raises external legal and brand protection concerns.

Trade mark risks in ChatGPT’s conversational advertising environment

Perhaps the most overlooked implication of ads in ChatGPT is the potential impact on trade mark rights.

Sponsored advertisements may reference registered business names or product brands, including those of competitors. Over time, this could result in brands being used, associated or positioned in advertising contexts without the trade mark owner’s knowledge or approval.

This is not a new problem in online advertising but the conversational nature of ChatGPT changes the way these associations may be perceived. Ads responding to natural‑language prompts could create stronger impressions of endorsement, affiliation or recommendation, particularly from the perspective of consumers.

From a trade mark and consumer law perspective, risks include:

• unauthorised use of registered trade marks in sponsored content;
• misleading or deceptive brand associations; and
• erosion of brand distinctiveness through contextual placement.

What business owners should do now to protect their brand

As AI platforms evolve into advertising environments, businesses should adapt their brand protection strategies accordingly by taking the following key steps:

• Monitoring brand usage
  Actively watch for how your business name or trade marks appear in AI‑driven advertising environments, not just traditional search engines or social media.
• Documenting concerning uses
  Capture evidence of sponsored ads that reference your trade marks, including screenshots and the surrounding conversational context.
• Assessing legal risk early
  Consider whether the use may mislead consumers, imply endorsement or conflict with existing trade mark registrations.
• Engaging with platform processes
  Where necessary, raise complaints or takedown requests through platform‑level mechanisms, supported by trade mark evidence.
• Updating governance frameworks
  Treat AI advertising environments as part of your broader digital risk and brand governance strategy.
• Ensuring your brands are protected
  By being proactive and securing registered trade mark rights, your business will maximise its prospects of preventing unauthorised use of your brand.

What ChatGPT advertising signals about the future of AI platforms

The introduction of advertising into ChatGPT marks another step in the commercial maturation of AI tools. For businesses, the key takeaway is awareness rather than alarm.

Free AI tools remain powerful, but they now operate within a commercial framework that requires users to be more discerning and brand owners to be more proactive. As AI platforms take on greater influence in how consumers find and evaluate businesses, trade mark protection and digital risk management will need to evolve alongside them.

Macpherson Kelley’s IP and privacy experts are ahead of the curve when it comes to ensuring businesses are prepared for new developments in technology. If you would like to discuss how advertising in ChatGPT may affect your business, or to review your trade mark protection strategy, please contact Mark Metzeling or a member of our team.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.