Interviews, insight & analysis on digital media & marketing

Empowering partners: introducing Microsoft’s solution to monetizing AI-powered chat experiences

by Kya Sainsbury-Carter, Corporate Vice President, Microsoft Advertising

Since we launched the all-new AI-powered Bing back in February, we have received strong and positive
product feedback as people have engaged in over a half a billion chats, helping Bing exceed 100 million
daily active users. While the industry-shifting power of generative AI is indisputable, it’s important to
reflect on how its value gets distributed across the entire ecosystem.

Advertising is a key business model to fuel innovation on a free and open web, and supporting other
companies is core to our mission to empower people and organizations to achieve more. Today, we are
pleased to announce an ads solution to help online services, apps, and publishers monetize chat so they
can innovate in their own engaging experiences.

Ads for chat API: Putting partners in control

The new Bing was the first major, free, advertising-funded consumer service to incorporate advanced
large language models in chat at an unprecedented scale. As a result, Microsoft is in a unique position to
explore how to integrate advertising into the chat flow in a way that is helpful and natural.
We have designed a solution that gives publishers, apps and online services the flexibility to customize
their experience with ads and create more economic value through their chat investments. Nobody
knows their audience better than they do, so our API allows publishers, apps and online services to
choose the ad formats that they believe are optimal for their audience in a way that feels natural to
their native experience. Our ads for chat API can serve ads on chat platforms from Microsoft or other

While there’s much more to learn and this journey is only beginning, Microsoft is committed to
empowering everyone to thrive in this new era of search.

What’s ahead

We are ready to engage to discuss chat experiences, whether they need both algorithmic organic results
and ads monetization or ads monetization only. We are excited about the conversations that are already
underway with those who reached out to us seeking our technical leadership and strong advertising

We are listening to feedback from our partners as we continue to learn and evolve our offerings. We
recognize that each publisher, app and online service has unique needs, depending on factors like the
primary device their audience uses or how their users engage with content. We are also sitting down
with advertisers to seek their input and help to shape the future of this experience.

Together, we can build the next wave of the web in a way that benefits publishers, apps and online
services, consumers, and advertisers.