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AI Chatbots and Browsers Raise Advertising, Privacy, and Security Concerns

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AI Chatbots and Browsers: New Frontiers in Advertising, Privacy, and Security

A recent study and several industry developments highlight emerging risks associated with the integration of advertising and data collection into artificial intelligence chatbots and browsers.

Study: Undisclosed Ads in Chatbots Can Influence User Decisions

A study published in an Association for Computing Machinery journal found that AI chatbots can be used for covert advertising, significantly influencing user choices without their awareness. Researchers built a chatbot that inserted undisclosed product recommendations into conversations.

Methodology

The study involved 179 participants who completed tasks using one of three chatbot types: a standard chatbot, one with undisclosed ads, and one with labeled sponsored suggestions. The ad-infused chatbot suggested products based on conversation context—for example, recommending a calorie-tracking app when a user asked for a diet plan.

Key Findings

Half of the participants who received sponsored but disclosed ads did not notice the advertising language.

Users rated ad-infused responses as more friendly and helpful, despite the chatbot performing 3% to 4% worse on tasks.

Implications for Manipulation

The researchers noted that chatbots could be more effective than social media algorithms at persuasion, as they can directly solicit information and adapt to user emotions. This capability raises serious concerns about profiling and psychological targeting extending to political and social manipulation.

OpenAI Launches Atlas Browser with ChatGPT Integration

OpenAI has introduced Atlas, a new web browser that integrates its ChatGPT technology. The browser is currently available for Apple computers.

Functionality

Atlas features an "agentic mode" that enables it to perform actions on behalf of the user. Demonstrated capabilities include analyzing an online recipe, calculating required ingredients for a specified number of diners, and facilitating the online purchase of those ingredients.

OpenAI CEO Sam Altman stated that artificial intelligence presents an opportunity to redefine the browser experience.

Data Collection and Privacy Concerns

The integration of ChatGPT within Atlas involves the browser collecting user data, which may exceed the scope of standard web browsers. Atlas can interact with user email and Google Docs, and it stores "browser memories" from visited websites.

OpenAI has stated that the default setting does not utilize information accessed via Atlas for training its AI models, but users have the option to consent to this use.

Expert Warnings

Lena Cohen, a Technologist at the Electronic Frontier Foundation (EFF), stated that the agentic AI mode significantly escalates privacy risks, noting that users may transfer more control to OpenAI than anticipated.

Anil Dash, a technology entrepreneur, suggested that the system might transmit more information to OpenAI than it provides to the user.

Security Risks and Industry Context

Prompt Injections

Experts have identified "prompt injections" as a potential security risk in AI browsers. Cohen described them as malicious instructions embedded within web pages that an AI agent could be induced to execute—such as an agent being directed to purchase an unintended product or to disclose credit card information.

OpenAI acknowledges prompt injection as an unresolved issue and reports ongoing efforts to train its models to disregard such instructions.

Industry-Wide Monetization Shift

The AI industry has increasingly adopted an advertising-based monetization model:

  • OpenAI launched its ChatGPT Search feature in late 2024 and its ChatGPT Atlas browser in October 2025.
  • In 2024, AI search company Perplexity began experimenting with ads.
  • Microsoft introduced ads to its Copilot AI.
  • Google's AI Mode for search and Amazon's Rufus chatbot increasingly include ads.

Commentators note that the primary method for monetizing search remains the advertising model, as exemplified by Google, which has generated over US$1.6 trillion in advertising revenue since 2001.

Personnel Changes and Broader Developments

OpenAI Leadership Moves

  • Fidji Simo, known for developing Facebook's advertising business, joined OpenAI last year.
  • OpenAI hired Meta's former advertising executive Dave Dugan in March 2025 to lead its advertising operations.
  • OpenAI also terminated executive Ryan Beiermeister for 'sexual discrimination'; reports suggest Beiermeister had opposed the introduction of adult content.

Resignations and Warnings

Several AI safety researchers recently resigned, citing concerns that companies are prioritizing profits over safety.

OpenAI researcher Zoë Hitzig warned that integrating advertisements into chatbot interactions could lead to manipulation.

Anthropic safety researcher Mrinank Sharma resigned, expressing concerns about a 'world in peril' and the difficulty of aligning actions with values.

International AI Safety Report

The International AI Safety Report 2026, which details risks like faulty automation and misinformation and proposes regulatory frameworks, received endorsement from 60 countries. However, the US and UK governments did not sign the report.

Regulatory and Policy Considerations

Current Gaps

Chirag Shah, a professor at the University of Washington's Information School, commented on the rapid development of AI with minimal regulatory frameworks.

Proposed Actions

Observers suggest that governments could implement measures to regulate corporate AI use, including:

  • Establishing consumer rights to control personal data, similar to the EU
  • Creating a data protection enforcement agency
  • Restricting corporate collusion in exploiting users with AI

As AI increasingly blends advertising, data collection, and autonomous action, the need for thoughtful regulation and transparent design has never been more urgent.