AI corporations hold forgetting they’re manufacturers — and it’s costing them.
Every week aside, OpenAI and Perplexity reminded everybody that in 2025, AI isn’t nearly expertise. It’s about model. From consumer outrage over newest updates to theatrical headlines for consideration — the fallout has been quick and public.
On one facet: OpenAI changed older GPT fashions like -4o and o3 with GPT-5 with out warning on August 7, no matter whether or not customers preferred it, inflicting outrage. The consequence: CEO Sam Altman promised to revive GPT-4o and improve GPT-5’s reasoning limits.
OpenAI clearly forgot that it’s not only a tech enterprise. It’s a part of a brand-consumer relationship — one thing that’s constructed on belief.
As Criteo’s vp analysis and head of AI, Liva Ralaivola famous: AI merchandise cease being simply concerning the tech and begin being concerning the model relationship when consumer expertise is affected.
“At that time, the consumer begins to assume not nearly what the product can do, however what model is behind it,” stated Criteo’s vp analysis and head of AI, Liva Ralaivola. “It’s the identical method Air Jordans turned greater than sneakers — the expertise and which means behind them pulled folks nearer to the model.”
Perplexity’s model was additionally just lately questioned when the corporate supplied $34.5 billion to purchase Google’s Chrome browser on August 12. Empty promise? In all probability. The sensible AI search firm had already been linked to rumored acquisition talks with Apple and Meta, and floated a bid for TikTok within the U.S. — none of which have occurred.
Talking particularly concerning the proposed Chrome acquisition, Perplexity’s head of communications, Jesse Dwyer, instructed Digiday that Perplexity’s bid for Chrome is severe and related to all web customers.
“Keep in mind, Perplexity was requested by each the DOJ and Google to supply enter on the treatment section of the case,” he stated. “We imagine that if the ruling within the case forces Google to promote Chrome we’re the very best stewards of it. Chrome and Chromium are elementary to the open web.”
Nonetheless, for Perplexity, touchdown headlines will get everybody speaking, however can slowly erode belief within the firm and its guarantees. Least of all as a result of it’s already in the course of copyright lawsuits with Information Corp, Forbes and Japan’s largest newspaper, Yomiuri Shimbun.
“Leaking one thing as huge as an intent to purchase Chrome, which owns 65% of the market, just isn’t an off-the-cuff stunt,” stated Bob Walczyk, CEO of MadConnect. “If you happen to put that into {the marketplace}, it must be as a result of there’s a transparent strategic motive not only for shock worth. With out that, you threat telling the world you’re making strikes you’ll be able to’t ship. That’s precisely why Perplexity loses credibility right here.”
The frequent thread is a lack of awareness of what a model means. OpenAI underestimated the emotional loyalty folks had for particular fashions. Perplexity overestimated the goodwill generated by making large, implausible strikes. Each missed the identical actuality: AI corporations at the moment are working in a consumer-brand world, the place notion may be as crucial as efficiency.
“A model walks into the room earlier than the enterprise does,” stated Walczyk. “In AI, the market strikes so quick that the model typically can’t hold tempo with the product’s evolution. That’s the character of this area, speedy change, fixed breakthroughs. It leaves many individuals unclear about what these corporations truly do or how they’re totally different. That’s precisely the place a robust model turns into important.”
Within the case of OpenAI and Perplexity, it’s not nearly constructing new options and iterations of the product anymore. What’s wanted is a correct model technique that marries the product with the emotional attachment to them from customers.
“Nice expertise is necessary, however by itself it’s not sufficient,” stated Debra Aho Williamson, founder and chief analyst at Sonata Insights. “Folks additionally help corporations as a result of they share the identical values, they deal with their prospects effectively, and they’re good residents of the world.”
Take Apple, as an example. Each time the corporate launches a brand new iPhone, it’s not simply concerning the telephone itself, however all the expertise and life-style it gives its customers.
“AI corporations have to take the identical method, shaping launches, comms, and product methods to create experiences folks really feel hooked up to, not simply instruments they use.”
Which implies each rollout and each interplay with the general public or with its customers issues. OpenAI and Perplexity might need began out purely tech-focused, however bringing customers into their fold has finally modified the dynamic. Get the tech proper and also you’re heading in the right direction. However constructing model belief and loyalty is the one method for any firm, together with OpenAI and Perplexity, to take care of longevity.
As Williamson put it: OpenAI and Perplexity should not essentially underestimating the emotional and cultural impression of their merchandise, “however they’re in all probability underestimating the worth of making and fostering emotional attachment to their merchandise,” she stated.
Brendan Norman, CEO and co-founder of Classify agreed.
“Dropping belief and loyalty can shortly kill a complete firm and / or immediately destroy market cap, which takes treasured time and assets to rebuild,” he stated.
OpenAI didn’t reply to Digiday’s request for remark.
