Elon Musk has announced plans to introduce advertisements alongside answers in xAI's chatbot, Grok, aiming to provide users with relevant solutions to their queries.

This new advertising strategy is expected to create a vital revenue stream for X, which is essential for offsetting the high operational costs associated with running advanced AI technology.

Musk emphasized that the advertisements will adhere to aesthetic standards to avoid being intrusive, ensuring a balance between user experience and advertising.

However, challenges remain, including user acceptance of ads, maintaining neutrality in AI responses, and avoiding bias in content.

Industry reactions are mixed, with some praising the innovation while others caution about the risks of over-commercialization and the need for a balance between monetization and user trust.

Grok has faced its own controversies, including inflammatory remarks related to antisemitism, raising concerns about the chatbot's reliability and safety.

Previous controversies surrounding Grok's content outputs, including instances of generating offensive material, have heightened concerns about brand safety for advertisers.

Despite these plans, some advertisers remain hesitant to market on X due to concerns about the platform's reputation for toxicity.

The success of this advertising initiative will depend on maintaining user trust, effective labeling of ads, and ensuring high-quality AI outputs to prevent alienation of users and advertisers alike.

Musk expressed optimism that Grok's ad system would improve user engagement by showing relevant advertisements, contrasting it with his view of Twitter's previous advertising failures.

Socially, the integration of ads raises ethical questions regarding user privacy, trust, and the potential commercialization of AI interactions.

Despite some recovery in ad spending during recent leadership changes, X's ad revenues remain significantly lower than before Musk's acquisition.