Author: Long Yue

Generative AI is transforming how users discover information, posing potential challenges to internet platforms that rely on traffic.

According to a report from Morgan Stanley on October 15, AI, represented by ChatGPT, currently serves more as a "distributor" and enabler for classified information websites rather than a direct replacement or disruptor of these platforms. In the short term, leading vertical websites continue to maintain their strong position thanks to brand strength and data advantages. However, in the long term, as the role of AI assistants evolves, they face risks including user relationships being intercepted and brand value being undermined.

The key takeaway from the application of ChatGPT is that AI is increasingly becoming a distribution layer rather than an aggregator aimed at replacing classified information platforms. For users, this changes how they initiate searches through conversational interfaces. For platforms, it provides a new pathway to reach the large and active user base of ChatGPT in an environment where user intent is clear.

A recent catalyst for this assessment is OpenAI's launch of the ChatGPT Apps feature. This feature allows external companies to directly integrate their own data and tools into ChatGPT. Previously, AI only provided broad suggestions or external links, but now users can browse and filter real-time information directly within the chat interface, such as searching for property listings via the Zillow plugin.

Traditionally, users accessed vertical websites for real estate, automobiles, etc., either through search engines or by directly visiting apps. In the new model, initial user interactions have shifted to AI's conversational interface, yet the underlying transactions and data support still rely on existing platforms. The report points out that this model opens up a new path for platform providers to engage with ChatGPT's vast and active user base, where user intentions are clear. This contrasts with previous market concerns that AI could completely bypass platforms. Early integration practices have shown that ChatGPT still relies on structured data from professional websites, as well as information on listings and market infrastructure.

Morgan Stanley analysts believe that while AI changes the starting point for user searches, it does not touch the endpoint of transaction execution. In simple terms, ChatGPT is becoming a new intermediary.

Stable Existing Patterns: Advantages of Leading Platforms Become Apparent

In the short term, AI's involvement may even solidify the position of industry leaders. For instance, the integration of the U.S. real estate website Zillow with ChatGPT not only enhances user experience through conversational searches but also allows the platform to avoid the substantial costs and risks of developing its own large language model.

Since ChatGPT’s applications tend to interact directly with individual, established branded platforms rather than simultaneously aggregating information from multiple sources, this effectively reinforces the "moats" of leading companies in various vertical domains. Higher-quality conversational searches may result in a greater conversion rate for prospective clients, thus enhancing the platform's bargaining power with its professional clientele, such as real estate agents.

Long-Term Concern: The Risk of Being "Undermined"

Despite optimistic short-term prospects, Morgan Stanley has warned of long-term risks. The key issue lies in the possibility that if users begin initiating and completing their search journeys entirely within ChatGPT, this will gradually weaken the brand visibility of professional sites.

The report identifies two potential risks.

First, if ChatGPT or another major language model becomes the dominant AI assistant in the market, it will have the power to control search result rankings, visibility, and commercialization policies, thereby shifting industry dominance from content platforms to interactive interfaces.

Second, a more substantial risk is that AI begins to siphon off platforms' "direct access" traffic. That is, users may no longer open apps like Rightmove or Auto Trader directly but will turn to AI assistants instead. Data shows that leading classified information platforms derive about 50% of their traffic from direct visits and 30% from organic searches. If ChatGPT starts eating into this valuable direct access traffic, it would severely undermine the brand stickiness of these platforms.

The report describes the most extreme disruptive scenario as the emergence of an "All-Knowing Assistant." In this mode, the AI would no longer serve as a channel for information but act as the user's full agent and decision "curator," recommending the "best" options based on a comprehensive understanding of the user, potentially completely bypassing existing platforms. Although the current integration model of ChatGPT reduces the immediacy of this scenario, it remains a long-term disruptive force that the classified information industry needs to watch closely.