In a move that could be seen as a step towards monetizing X's AI (AI) capabilities, Elon Musk has announced plans to introduce advertising to answers generated by Grok, the platform's AI chatbot. This strategy points to a new direction for the advertising business of the company Musk is currently directly overseeing after the former CEO retired. Linda Jaccarinothe report states.According to the Financial Times, during a live broadcast discussion with advertisers, Musk said that marketers can pay for products and services immediately to appear in Grok's responses. “If the user is trying to solve the problem [by asking Grok]it would be ideal to promote a specific solution at that point,” he explained. Musk has shown that this shift is necessary to help pay for the costly graphics processing units (GPUs) needed to power AI applications.
AI overhauls targeting and delivery on X: Musk
Musk has also outlined a broader plan to leverage X's technology to transform X's advertising infrastructure. The goal is to automate the advertising process for your brand and significantly improve ad targeting. The effort reportedly faced the challenge of X's ad technology team effectively reaching their intended audience.The announcement comes as X continues to face heat from some advertisers over content moderation issues. Recently, Grok has sparked controversy for generating anti-Semitistic content with Pro Hitler, raising concerns about AI safety guardrails. In an email sent to some advertisers, X highlighted recent improvements in ad auctions, claiming that web ad conversions increased by 40% and average ad costs reduced by quarterly by 7%.Furthermore, Mask's direct involvement with advertisers reestablishes him as the official face of X's business operations. His reappearance follows the departure of Linda Jaccarino in July.
