AI Agents Threaten Ad-Based Web Model
Key point
As AI agents proliferate, the existing ad-based web model is expected to collapse and shift toward a machine-to-machine payment model.
Details
Unlike humans, AI agents don't click on ads or form brand preferences, which is fundamentally threatening the existing ad-based web economic model. If agents become the primary consumers of web content, advertising metrics could collapse and publishers' revenue models could break down.
Coinbase engineer Erik Reppel proposed the x402 protocol as an alternative to this. This is a Machine-to-Machine payment method that allows AI agents to instantly pay small amounts for data access.
This model represents a shift from the existing cost-per-impression (CPM) based model to a Utility Metering model that charges based on the volume of data calls. Stablecoins, which enable instant settlement without human authentication, are expected to become the core of this infrastructure.
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