Perplexity AI responded to Forbes' accusations by acknowledging that their new product feature, Perplexity Pages, had some "rough edges." CEO Aravind Srinivas admitted that they needed to improve the feature and take Forbes' feedback into account. As a result, Perplexity made changes to the formatting of their blog posts to highlight sources more prominently and include image sources. However, there was no apology or removal of the offending content. Srinivas also emphasized that Perplexity has been a significant source of referral traffic for Forbes and other publishers, and that they are trying to build positive relationships with news publishers to ensure their content reaches more people.
Perplexity AI, a young artificial intelligence startup, is challenging the dominance of tech giants like Google and Apple in the AI-driven search industry6. With a fresh investment of USD$62.7 million led by Y Combinator's former head of AI, Daniel Gross, Perplexity has achieved unicorn status, doubling its valuation to over a billion dollars in just over a year6.
Perplexity's approach is to build an AI-native search experience entirely from scratch, eschewing the traditional methods employed by established players. The company's offerings include an AI-driven knowledge discovery platform designed to seamlessly integrate into enterprise workflows. By offering tailored solutions for enterprises and leveraging the power of AI to enhance knowledge discovery, Perplexity is challenging the status quo and redefining the search paradigm.
Perplexity's AI-driven search capabilities have a wide range of potential applications across industries such as healthcare, legal, and scientific research. For example, medical professionals could use the platform to quickly access and synthesize relevant research and patient data, enabling more informed decision-making and improved patient outcomes.
Perplexity is also competing against tech giants Google and Apple, which are increasingly incorporating similar AI features into their core products5. With its recent funding and strategic partnerships, Perplexity is poised to expand its reach and influence, potentially reshaping the way businesses and individuals access and utilize knowledge. As the company continues to innovate and refine its offerings, the future of search may very well be AI-native and tailored, with Perplexity leading the charge.
Perplexity AI is facing challenges from news media companies regarding its business practices, specifically related to its AI-driven search chatbot. The issues raised by the media companies include:
Lack of proper attribution: Perplexity AI has been accused of republishing articles from prominent news sources without proper credit. For instance, Forbes claims that Perplexity published a summarized news story with information and similar wording to a Forbes investigative story but without citing the media outlet or asking for its permission.
Content "knock-offs": Forbes said it later found similar “knock-off” stories lifted from other publications. This has raised concerns about Perplexity's content aggregation practices.
Inventing fake quotes: The Associated Press separately found another Perplexity product feature inventing fake quotes from real people. This has raised questions about the reliability and authenticity of the information provided by Perplexity's AI system.
Perplexity AI's CEO Aravind Srinivas has defended the company, stating that they are trying to build positive relationships with news publishers and that their product never "ripped off content from anybody". He also emphasized that Perplexity is more of an aggregator of information and provides it to the people with the right attribution. However, he acknowledged the feedback from Forbes and said that they have taken steps to more prominently highlight the sources.