In-AI Advertising: Better Answers for Users, Big Questions for Society, with ZeroClick's Ryan Hudson
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode, Ryan Hudson, founder and CEO of Zero Click, discusses his company's $55 million mission to build native AI advertising through "paid context" — essentially having AI systems consider advertiser content during inference time. Hudson, who previously founded Honey (sold to PayPal for $4B), explores how ad-supported free tiers could democratize AI access while addressing the monetization challenges facing developers. The conversation delves into critical questions around user trust, market incentives, and lessons from social media advertising (29:00), examining whether AI advertising can deliver the benefits of better matching between buyers and sellers without repeating the addictive, engagement-maximizing pitfalls of previous platforms. Hudson envisions a future where contextually relevant ads enhance rather than exploit user experiences, though he candidly admits many longer-term societal implications remain uncharted territory (04:24).
Speakers
Ryan Hudson
Founder and CEO of Zero Click, which recently announced a $55 million fundraise to build a native advertising platform for AI systems. Previously founded Honey, the online shopping company that sold to PayPal for $4 billion.
Nathan Labenz (Host)
Host of The Cognitive Revolution podcast, exploring the implications of AI through conversations with researchers, entrepreneurs, and thought leaders. Known for deep-dive interviews that examine both the technical capabilities and societal implications of artificial intelligence.
Key Takeaways
Demand Clarity on Economic Incentives
Before adopting any AI tool, map who gets paid when you take action. The mortgage industry's predatory pricing teaches us that when sellers earn more for extracting maximum value from customers, auction dynamics reward the most exploitative players. (68:57) Ask: Does this AI make money when I buy something specific, or when I get genuinely useful information?
Build for Context, Not Conversation Volume
Ryan's team discovered users actually want ads blocked in most contexts except when they're literally searching for products—then ads become the best answers. (18:18) The lesson: Focus on highly contextual, intent-driven applications rather than trying to maximize engagement volume. Quality beats frequency every time.
Treat AI as Information Augmentation, Not Replacement
Zero Click's approach isn't about serving more ads—it's about giving AI systems access to real-time advertiser context alongside organic search results, then letting the AI filter for relevance. (19:08) This "additional information source" model preserves user trust while creating genuine value, unlike pure content replacement strategies.
Default to Platform Neutrality When Building Infrastructure
Just as Stripe doesn't dictate what businesses can sell, Ryan advocates for neutral ad platforms that let market forces determine what succeeds. (65:32) When you're building foundational infrastructure, resist the urge to be prescriptive about use cases—focus on creating robust, ethical rails that enable innovation rather than controlling it.
Start With High-Intent Commercial Queries
Rather than trying to solve all advertising at once, Zero Click focuses first on commercial search scenarios where users already have buying intent—similar to Google's proven model. (44:51) This approach validates the technology on the clearest use case before expanding to more complex discovery advertising challenges.
Statistics & Facts
- Zero Click just announced a $55 million fundraise to build a native advertising platform for AI systems (00:40)
- Chrome browser holds 78% market share, making it the dominant platform for browser extensions (99:11)
- Open Evidence reports that 40% of doctors use their ad-supported ChatGPT for doctors daily, taking market share from enterprise-focused competitors (78:34)
