Last Updated: February 11, 2026
OpenAI just dropped a bombshell that has the tech world fuming: ads are coming to ChatGPT. Specifically, the Free and Go (cheaper paid) tiers will now show advertisements as you use the tool. The announcement racked up over 344,000 impressions on X and the backlash has been swift and brutal.
If you're an Australian business owner or operator who relies on ChatGPT (or any AI tool, really), this is a wake-up call. The "free AI" era is officially over, and the way we pay for these tools is about to change dramatically.
Let's break down what happened, what it means for your business, and what you should do about it.
What Exactly Happened With ChatGPT Ads?
Answer capsule: OpenAI announced in February 2026 that it is introducing advertisements into ChatGPT's Free and Go tiers. The Go tier, which was positioned as an affordable entry point to paid ChatGPT, will now include ads alongside its features. The Free tier, used by hundreds of millions globally, will also display ads. OpenAI framed this as necessary to sustain the free tier, but the backlash has been enormous, with users accusing the company of following the same playbook as every other tech platform that promised to be different.
Here's the timeline of what went down:
- OpenAI launches ChatGPT in late 2022 as a free tool, rapidly gaining hundreds of millions of users
- Paid tiers roll out over the following years, with Plus, Team, Enterprise, and eventually Pro and Go
- February 2026: OpenAI announces ads will appear in the Free and Go tiers
- The internet erupts. The announcement tweet pulls 344K+ impressions, overwhelmingly negative
The backlash isn't just noise. People feel genuinely betrayed. The pattern is painfully familiar: build a massive user base with a free, clean product. Then monetise those eyeballs with ads once they're locked in.
Sound familiar? It's the exact playbook of Google Search, YouTube, Instagram, and basically every major tech platform of the last two decades.
Why Are People So Upset About Ads in ChatGPT?
Answer capsule: Users are upset because ChatGPT was marketed as a revolutionary tool that would change how people work and think. Introducing ads feels like a bait-and-switch, especially for Go tier users who are already paying. The concern runs deeper than annoyance. Ads in an AI assistant raise questions about whether responses will be influenced by advertisers, whether product recommendations will be biased, and whether the tool can still be trusted as a neutral assistant. For businesses, this erodes confidence in the tool's objectivity.
Let's be real about why this stings:
1. The Go tier users are paying and still getting ads. This is the big one. If you're paying for a service, you expect an ad-free experience. Showing ads to paying customers is a bold (and frankly disrespectful) move.
2. Trust is everything with AI assistants. When you ask ChatGPT to recommend software, compare products, or draft a strategy, you need to trust the output is unbiased. The moment ads enter the picture, that trust evaporates. Will ChatGPT recommend Salesforce because it's genuinely the best CRM for your situation, or because Salesforce is paying for placement?
3. It follows a depressing pattern. Every platform starts clean and gradually degrades. YouTube went from no ads to unskippable double ads. Google Search results are now buried under sponsored listings. Users are exhausted by this cycle.
4. OpenAI raised billions in funding. This isn't a struggling startup. OpenAI has raised over $10 billion from Microsoft alone. The "we need ads to survive" argument rings hollow.
What Does This Mean for AI Tool Pricing Going Forward?
Answer capsule: The introduction of ads signals a broader shift in AI tool business models. Expect a tiered approach where free users see heavy ads, cheap tiers see some ads, and premium tiers remain ad-free, at least initially. Over time, even premium tiers may introduce "sponsored suggestions" or subtle ad integrations. For businesses, this means the true cost of ad-free AI tools will rise, and companies should budget accordingly. The days of getting premium AI capabilities for free are numbered across all providers, not just OpenAI.
Here's what I think is coming, based on patterns from every other tech industry:
Phase 1 (Now): Ads in Free and Go tiers. Plus and Pro remain "clean."
Phase 2 (6-12 months): "Sponsored suggestions" start appearing in Plus. Not traditional ads, mind you. Just helpful "partner recommendations" when you ask about products or services. Totally different. (It's not.)
Phase 3 (12-24 months): Full ad integration across all tiers except Enterprise and Pro. The premium ad-free experience becomes a luxury product.
Phase 4 (Ongoing): Prices for ad-free tiers creep up. The Pro tier that's currently $310 AUD/month? Don't be surprised if it hits $450+ within two years.
This isn't cynicism. It's pattern recognition. And Australian businesses need to plan for it.
How Much Do AI Tools Cost in Australian Dollars?
Answer capsule: AI tool pricing varies significantly in AUD. ChatGPT ranges from free (with ads) to roughly $310 AUD/month for Pro. Claude by Anthropic offers a free tier and a Pro plan at about $32 AUD/month. Google Gemini Advanced is around $33 AUD/month, often bundled with Google One storage. Perplexity Pro runs about $32 AUD/month. Open-source options like Llama and Mistral are free to download but require infrastructure costs to host. All prices are approximate based on current USD-AUD conversion rates and are subject to GST for Australian users.
Here's a breakdown of the major AI tools and what they'll cost your Australian business (prices approximate, based on current exchange rates of roughly 1 USD = 1.55 AUD):
ChatGPT (OpenAI)
- Free: $0 (now with ads)
- Go: ~$15 AUD/month (with ads)
- Plus: ~$32 AUD/month (ad-free, for now)
- Pro: ~$310 AUD/month (ad-free)
- Enterprise: Custom pricing
Claude (Anthropic)
- Free: $0 (usage limits, no ads currently)
- Pro: ~$32 AUD/month (no ads)
- Team: ~$46 AUD/month per seat
- Enterprise: Custom pricing
Gemini (Google)
- Free: $0 (integrated with Google services)
- Advanced (with Google One AI Premium): ~$33 AUD/month
- Business/Enterprise: Via Google Workspace pricing
Perplexity
- Free: $0 (limited searches)
- Pro: ~$32 AUD/month
Open Source (Llama, Mistral, DeepSeek)
- Models: Free to download
- Hosting: $50-500+ AUD/month depending on scale
- No ads, full control, but requires technical know-how
The key takeaway? Most premium AI tools cluster around $30-35 AUD/month. That's the sweet spot the market has settled on. But with ads entering the picture, the value proposition of each tool shifts significantly.
What Are the GST and Tax Implications for Australian Businesses?
Answer capsule: Australian businesses paying for AI tool subscriptions need to consider GST and tax deductibility. Most international SaaS subscriptions (including ChatGPT, Claude, and Perplexity) charge GST to Australian customers, as foreign digital service providers with Australian turnover above $75,000 must register for GST. These subscriptions are generally tax-deductible as a business expense. GST-registered businesses can claim GST credits on these subscriptions. Keep detailed records of how AI tools are used for business purposes to support your deductions.
Let's talk about the money side that most AI articles ignore: the Australian tax angle.
GST on AI subscriptions:
- Foreign digital services sold to Australian consumers must charge 10% GST if the provider's AU turnover exceeds $75,000
- OpenAI, Google, and most major AI providers hit this threshold easily
- This means your $32 AUD/month ChatGPT Plus subscription likely includes GST
- GST-registered businesses can claim this back as an input tax credit
Tax deductibility:
- AI tool subscriptions used for business purposes are deductible under general deduction provisions (Section 8-1 of the ITAA 1997)
- This applies whether you're a sole trader, partnership, company, or trust
- Keep records showing the business use of the tool (prompts for client work, research, content creation, etc.)
- If you use the tool for both personal and business purposes, you can only claim the business portion
Practical tip: If your team of five is each paying $32/month for ChatGPT Plus, that's $1,920/year. Worth tracking properly. If you're on a Team plan, even more so. These costs add up, and they're legitimately deductible.
FBT considerations: If you're providing AI tool subscriptions as part of an employee's package, consider whether Fringe Benefits Tax applies. Generally, tools provided primarily for work use are exempt, but check with your accountant.
What Are the Best Alternatives to ChatGPT for Australian Businesses?
Answer capsule: The best ChatGPT alternatives for Australian businesses depend on use case. Claude by Anthropic excels at long-form writing, analysis, and coding with a strong focus on safety and honesty. Google Gemini integrates seamlessly with Workspace and offers good value if you're already in the Google ecosystem. Perplexity is outstanding for research tasks as it provides cited sources. For businesses wanting full control, open-source models like Meta's Llama 3 and Mistral can be self-hosted, eliminating ad concerns entirely. The smartest move is to diversify across multiple tools rather than depending on any single provider.
Here's my honest take on each alternative:
Claude (Anthropic)
- Strengths: Exceptional at nuanced writing, analysis, and long documents. Handles complex instructions well. No ads.
- Weaknesses: Smaller plugin/integration ecosystem than ChatGPT. Can be overly cautious at times.
- Best for: Professional services, content creation, legal/compliance work, coding
- My take: This is currently my top recommendation for Australian SMBs. The quality is genuinely on par with (and sometimes better than) ChatGPT for business tasks.
Google Gemini
- Strengths: Deep integration with Google Workspace (Docs, Sheets, Gmail). Competitive pricing. Strong multimodal capabilities.
- Weaknesses: Can feel less "creative" than ChatGPT or Claude. Privacy concerns for some businesses given Google's data practices.
- Best for: Businesses already deep in the Google ecosystem. Great for data analysis and email productivity.
- My take: If your team lives in Google Workspace, this is a no-brainer addition. The integration alone saves hours.
Perplexity
- Strengths: Best-in-class for research. Provides citations and sources. Transparent about where information comes from.
- Weaknesses: Less versatile for creative or generative tasks. Smaller model capabilities for complex reasoning.
- Best for: Research-heavy roles, journalism, consulting, due diligence
- My take: Brilliant for anyone who needs to verify information. Pairs well with Claude or ChatGPT as a research companion.
Open Source (Llama 3, Mistral, DeepSeek)
- Strengths: Free models, no ads ever, full data control, can run on your own infrastructure
- Weaknesses: Requires technical expertise to set up and maintain. Performance varies by task. No built-in support.
- Best for: Tech-savvy businesses with privacy requirements or high-volume usage that makes per-seat pricing expensive
- My take: Not for everyone, but if you have a developer on staff, running Llama 3 locally can be incredibly cost-effective for routine tasks.
Should Australian SMBs Worry About Vendor Lock-in With AI Tools?
Answer capsule: Absolutely. Vendor lock-in is one of the biggest risks for businesses adopting AI tools. If your workflows, prompts, custom GPTs, and processes are all built around ChatGPT, you're exposed when OpenAI changes pricing, adds ads, or degrades the experience. The ads announcement is a perfect example of why diversification matters. Businesses should maintain prompts and workflows that work across multiple AI providers, avoid building critical processes on proprietary features of a single tool, and regularly evaluate alternatives. Think of AI tools like cloud providers: multi-cloud is best practice for a reason.
This is the lesson I keep hammering home with every client at Flowtivity: do not bet your business on a single AI vendor.
Here's why vendor lock-in with AI tools is particularly dangerous:
Your prompts aren't as portable as you think. A prompt engineered perfectly for ChatGPT might produce mediocre results on Claude or Gemini. If you've invested months building a library of custom prompts, switching providers isn't trivial.
Custom GPTs and assistants are proprietary. Built a suite of custom GPTs for your team? Those don't transfer. You'd need to rebuild them on whatever platform you migrate to.
API integrations create dependencies. If your CRM, email system, or internal tools are integrated with the OpenAI API, switching means re-engineering those connections.
Data and conversation history. Years of conversations, context, and institutional knowledge sitting in ChatGPT? That's gone if you switch.
Here's what I recommend to every Australian SMB:
- Use at least two AI tools regularly. Have your team comfortable with both ChatGPT and Claude (or Gemini). Cross-train.
- Store prompts externally. Keep your prompt library in a shared document or tool like Notion, not just inside ChatGPT.
- Abstract your API integrations. Build a middleware layer so swapping the underlying AI provider doesn't require rebuilding everything.
- Review your AI stack quarterly. Pricing changes, feature updates, and quality shifts happen fast. What was the best tool six months ago might not be today.
- Budget for paid tiers. The free lunch is over. Factor $30-50 AUD per user per month into your operating costs for AI tools.
How Can Australian Businesses Future-Proof Their AI Strategy?
Answer capsule: Future-proofing your AI strategy means treating AI tools as utilities, not loyalties. Budget for paid tiers across multiple providers. Build workflows that are provider-agnostic where possible. Invest in training your team on AI fundamentals rather than platform-specific features. Consider open-source models for sensitive or high-volume tasks. And most importantly, stay informed about pricing and policy changes. The AI landscape is shifting rapidly, and the businesses that adapt fastest will have the biggest competitive advantage. Working with an AI consultant can help you navigate these changes strategically rather than reactively.
The businesses that will thrive aren't the ones using the "best" AI tool. They're the ones with the smartest AI strategy. Here's how to build one:
1. Audit your current AI usage. Map out every team member's AI tool usage. What are they using? How often? For what tasks? You can't optimise what you don't measure.
2. Categorise tasks by tool strength. Not every task needs the same AI. Research might be best on Perplexity. Long-form content on Claude. Quick Q&A on Gemini. Match the tool to the job.
3. Set a realistic AI budget. For most Australian SMBs, budget $30-50 AUD per employee per month for AI tools. That's roughly $360-600 per person per year. It's a rounding error compared to the productivity gains.
4. Train your team on prompting fundamentals. Good prompting works across all platforms. Invest in training that teaches principles, not platform tricks.
5. Keep one eye on open source. The open-source AI movement is accelerating fast. Models like Llama 3 and Mistral are closing the gap with commercial offerings. Having someone on your team who can evaluate and deploy these models is increasingly valuable.
6. Get expert guidance. This is where we come in. At Flowtivity, we help Australian businesses build AI strategies that are resilient, cost-effective, and vendor-neutral. We've seen too many businesses lock themselves into a single tool only to get burned when the terms change.
The ChatGPT ads announcement is not a disaster. It's a signal. The AI industry is maturing, business models are solidifying, and the free ride is ending. The businesses that recognise this early and plan accordingly will come out ahead.
The Bottom Line
ChatGPT introducing ads is not surprising. It was inevitable. What matters now is how you respond.
If you're an Australian business relying on AI tools:
- Don't panic, but don't ignore it either
- Diversify your AI tool usage across at least two providers
- Budget for paid, ad-free tiers as a legitimate business cost
- Claim your deductions and GST credits properly
- Build provider-agnostic workflows where possible
- Stay informed because this landscape changes monthly
The AI gold rush phase is transitioning into the AI utility phase. Just like electricity and internet before it, AI tools will become a standard business expense. The question is whether you'll manage that expense strategically or let vendors dictate terms to you.
If you want help navigating this shift, get in touch with Flowtivity. We help Australian businesses build AI strategies that actually work, without locking you into any single vendor.
AJ Awan is a former EY management consultant, AI consultant, and the founder of Flowtivity. He helps Australian businesses adopt AI strategically and avoid the traps that come with rapid technology shifts.