GenAI providers OpenAI, Perplexity, X, and Google are in a race, adding features and fine-tuning models at breakneck speed. But as the rise of DeepSeek shows, technological advantages can be fleeting. In this high-stakes battle, the winners will go beyond building one feature after another and learn how to build strong emotional connections with customers.
OpenAI made the first major step in brand building with a Super Bowl ad. OpenAI did more than promote ChatGPT; by associating AI with humanity’s greatest innovations such as the discovery of fire and the invention of the wheel, OpenAI was making a statement about the entire category.
OpenAI and its competitors face a number of challenges as they fight each other for leadership. Here’s what they need to do.
Differentiate
ChatGPT. Grok. Gemini. Claude. Perplexity. Copilot. Names are springing up like dandelions, and the category cries out for differentiation. ChatGPT stands apart and arguably stands for the category because it was the first pioneer, inspiring curiosity and bewilderment. But what about the others?
Perplexity is trying to carve out space as the AI search engine alternative to Google, blending AI and citations into a single package. Anthropic’s Claude is going for safety-first AI, trying to brand itself as the responsible, thoughtful alternative (hence the name Claude, a nod to Claude Shannon, father of information theory). X’s Grok stands apart by leaning into a more conversational and sometimes humorous tone.
Build trust
Timeless brands are built on trust, and there’s plenty of fear as people adopt AI. People are worried about AI replacing them. There are also concerns about AI not being responsible, reporting information with bias, and violating consumer privacy.
By showing us how they make our lives better, conversational AI tools can convince skeptics that the transition is worth it. This will be an ongoing issue to manage. Microsoft Copilot understands this, offering to be “your Copilot,” a branding choice that reassures, not threatens.
Instead of vague claims about “responsible AI,” AI companies should document and share the real steps they take to reduce bias, misinformation, and to protect privacy.
Consider also looking to other industries for inspiration. Patagonia has gained customer trust by showing where its materials come from, how workers are treated, and how products affect the environment. AI brands could take a similar approach by publishing regular bias audits, showing where AI still struggles and how it’s improving. Or releasing “AI Impact Reports” on how the technology affects jobs, creativity, and misinformation.
Be transparent
People inside AI understand that generative AI actually learns from mistakes and will get better. But consumers don’t.
Perplexity is tackling trust in another way by emphasising transparency, always citing sources for its AI-generated responses. Perplexity builds transparency by footnoting its AI-generated answers, but the tools as a whole (including Perplexity) need to be clear about when they are speculating and drawing inferences as opposed to presenting answers as facts.
Here’s an even bolder move: publish error rates and benchmarks. Technology businesses such as NVIDIA release safety reports; AI companies can do that and even more by sharing actual data that demonstrates their performance.
Design better experiences
Using generative AI today is like learning a secret handshake. Prompt engineering is still an insider game, and casual users get left behind. AI brands need to fix this.
Claude is making strides by announcing that it’s working on remembering details across conversations, reducing the need for users to repeat themselves. ChatGPT introduced custom GPTs, allowing users to tweak behaviours. Microsoft’s Copilot integrates into Office, helping users without requiring them to open another AI app. Google Gemini’s Deep Research capability provides reports that can be easily saved as Google Docs on one’s Google Drive.
The lesson: make your product seamless and intuitive. The more friction AI removes, the stickier the brand becomes.
Monetise carefully
Advertising is coming. Perplexity is testing it. So is Google. People don’t mind ads if they feel natural, and they choose ad-supported tiers on streaming because advertising surrounds value.
People will accept ads on Perplexity as long as it doesn’t interfere with the experience. If Perplexity floods AI search results with native ads disguised as organic answers, it loses trust overnight. ChatGPT is exploring monetisation with more expensive tiers beyond what its competitors offer. Google is experimenting with AI-generated search results, making AI ads feel useful, not intrusive.
May the strongest brand win
The AI wars aren’t just about model size, features, or speed. They’re about branding, trust, and usability. The leaders won’t be the ones with the most parameters. They’ll be the ones that make AI feel indispensable.
The race is still wide open. But one thing’s for sure: whoever builds the strongest brand wins.
Jim Misener is the President of 50,000feet.
