The end of the ad-free era: Can OpenAI monetize India’s "high-intent" users without breaking their trust?

OpenAI’s decision to introduce advertising on ChatGPT in the United States marks a structural shift in how generative AI platforms are monetised. But in India, where ads have not yet rolled out, the bigger question is not timing, but acceptance: will Indian users tolerate ads inside a space they increasingly treat as personal, private, and emotionally responsive?

Unlike search or social platforms, ChatGPT operates in a more intimate mode, where users seek advice, reassurance, creativity, and problem-solving. That makes advertising here less about visibility and more about trust, relevance, and restraint. For Indian brands, the test will be whether conversational ads feel like meaningful assistance or commercial intrusion.

Conversational Ads Could Shorten Decision Journeys if Done Right

For Shreya Sachdev, Head of Marketing at PUMA India, ChatGPT represents a shift from one-way advertising to two-way engagement, where brands interact with users already displaying high intent.

“Unlike traditional digital ads that rely on assumed intent, ChatGPT allows brands to engage with real-time, high-intent consumers who initiate conversations,” she said. From a performance lens, PUMA would track how quickly users move through the funnel, engagement depth, recall, and conversion. If conversational ads can educate users and shorten decision journeys, Sachdev sees a compelling ROI case.

On user acceptance, she warns that success depends on how naturally brands adapt to conversational behavior. “If brands fail to adapt, ads will feel intrusive,” she said, adding that disclosure and ad frequency will be critical to preserving trust.

She also drew clear category boundaries. “Health, finance, and personal relationships require far greater responsibility. Ads should be restricted in sensitive contexts,” she noted.

On pricing and privacy, Sachdev believes Indian users may tolerate ads in exchange for free access. “India has historically resisted premium subscriptions. If users continue seeing value, they will likely stay, even with ads,” she said.

However, she cautioned that if users feel answers are influenced by advertisers, trust could erode gradually. “When ads genuinely help, engagement grows. When they feel forced, trust slowly disappears.”

ROI Will Decide Adoption, Not Hype

Sindhu Biswal, CEO and Founder of Buzzlab, argues that Indian marketers will demand rigorous, performance-led proof before allocating budgets to ChatGPT ads.

“Indian marketers live and breathe ROI,” he said. “We would demand granular metrics such as conversation-to-conversion rates of 20–30%, ROAS exceeding 3x compared to Google or Meta, and strong LTV to CAC ratios. Vanity metrics will not cut it when every rupee counts.”

Biswal believes Indian users will tolerate ads only if they are clearly labeled, contextually relevant, and non-interruptive. “Bottom-placed, native-feeling ads may work. But interrupting emotional conversations like career anxiety or fitness rants will quickly erode trust,” she said.

He also drew firm red lines around sensitive categories. “Travel and shopping are acceptable. But ads during health, finance, or relationship queries are a strict no-go. Emotional vulnerability makes these spaces radioactive.”

On privacy trade-offs, Biswal expects Indian users to follow familiar patterns seen on YouTube and Instagram. “Price-sensitive users will trade data for free access, but transparency and opt-outs will be essential,” she said.

Still, he warned that perceived bias in responses could trigger backlash over time. “Engagement may not drop immediately, but viral exposes on social media about biased answers could sharply reduce trust and active users.”

ChatGPT Is an Advice Channel, Not a Search Engine

Amitabh Bhatia, Head of Marketing at Stovekraft Ltd, sees ChatGPT as fundamentally different from transactional platforms like Google. “Google is transactional. Conversational AI is personal, almost like a companion,” he said. “Advertising in an advice channel comes with far more responsibility.”

Bhatia believes conventional metrics such as click-through rates will evolve into platform-specific indicators like “Cost per Query” or “Share of Relevant Query.” He also sees two possible advertising approaches: organic brand surfacing through GenAI Engine Optimisation (GEO), or explicitly labeled sponsored placements.

However, he cautions against embedding ads directly into responses. “ChatGPT is a private room. If ads feel based on personal confessions or overly targeted, it will feel uncomfortable,” he said.

Instead, he suggests opt-in models, where users are asked whether they want brand recommendations. “The platform should allow users to control when they want sponsored suggestions,” he added.

He also advocates for a self-regulatory framework led by platforms, with clear transparency standards. “A large segment of users may trade data for free access, but premium ad-free options at fair price points will be important.”

Ads Must Feel Like a Natural Emotional Fit

Arvind Ramachandran, Vice President – Marketing at Dairy Day Ice Creams, believes success in conversational advertising will depend less on direct conversions and more on emotional relevance and timing.

“In impulse-driven categories like ice cream, success cannot be judged purely by clicks or sales,” he said. “If ChatGPT ads can nudge users meaningfully, build associations, and accelerate lower-funnel decisions, that’s a bonus.”

He warned that interruptions will be rejected on a platform built on personalization and intimacy. “If a brand feels intrusive, users will reject it. But if it feels like a natural extension of the solution being explored, it can enhance brand trust.”

Ramachandran sees low-stakes categories such as food, travel, shopping, and entertainment as safer entry points. “Suggesting ice cream during a movie night feels natural. Suggesting financial products during anxiety-driven money decisions does not,” he said.

He believes Indian users will tolerate ads only if they offer value, transparency, control, and relevance. “If ads elevate the quality of recommendations, acceptance will grow. If brand plugs feel forced or manipulative, tolerance will drop sharply.”

Across categories, Indian marketers agree on one theme: ChatGPT ads will not fail because of advertising itself, but because of poor execution.

If ads feel helpful, contextual, transparent, and respectful of emotional boundaries, Indian users may accept them as they have on YouTube and Instagram. But if monetisation compromises trust, authenticity, or perceived neutrality, the backlash could be swift.