Commercialized Generative AI: A Critical Study of the Feasibility and Ethics of Generating Native Advertising Using Large Language Models in Conversational Web Search

How will generative AI pay for itself? Unless charging users for access, selling advertising is the only alternative. Especially in the multi-billion dollar web search market with ads as the main source of revenue, the introduction of a subscription model seems unlikely. The recent disruption of search by generative large language models could thus ultimately be accompanied by generated ads. Our concern is that the commercialization of generative AI in general and large language models in particular could lead to native advertising in the form of quite subtle brand or product placements. In web search, the evolution of search engine results pages (SERPs) from traditional lists of ``ten blue links'' (lists SERPs) to generated text with web page references (text SERPs) may further blur the line between advertising-based and organic search results, making it difficult for users to distinguish between the two, depending on how advertising is integrated and disclosed. To raise awareness of this potential development, we conduct a pilot study analyzing the capabilities of current large language models to blend ads with organic search results. Although the models still struggle to subtly frame ads in an unrelated context, their potential is evident when integrating ads into related topics which calls for further investigation.