How is Perplexity AI Different from ChatGPT?

by | May 22, 2025 | Technology and Innovation | 0 comments

Perplexity AI vs. ChatGPT: What SMB Leaders Need to Know

AI tools are becoming essential productivity drivers across industries, but not all platforms are built the same. While many business leaders are now familiar with ChatGPT, a new entrant—Perplexity AI—is gaining traction, particularly among professionals who want fast, credible answers with sources.

But what exactly is Perplexity AI? How is it different from ChatGPT? And what should decision-makers know before their teams start using it?

What is Perplexity AI?

Perplexity AI is a conversational AI search engine. Unlike ChatGPT, which is primarily a generative AI model trained on vast datasets, Perplexity is designed to deliver real-time, source-backed answers. It functions more like a supercharged research assistant, combining natural language understanding with current web data.

  • Key Feature: It provides citations and links to its information sources in real time.

  • Use Case: Ideal for fact-checking, research, competitive analysis, and executive briefings.

How It Differs from ChatGPT

Feature ChatGPT Perplexity AI
Data Source Static (GPT-4’s training data) + optional web browsing (Pro version) Real-time web search and indexing
Response Style Generative, creative, conversational Factual, concise, cited
Ideal For Drafting, ideation, customer service, email writing Research, technical queries, factual insights
Source Transparency Limited (unless browsing is enabled) Always cited with URLs

Perplexity is built for decision-makers who need verifiable information fast—not just well-written responses. ChatGPT, on the other hand, excels in content generation and conversational support.

Why This Matters for SMBs

If you don’t know which AI tools your teams are using—or how they’re using them—your business could be exposed to risks. Employees may turn to tools like Perplexity or ChatGPT for research, client communications, or even strategy brainstorming. And while both can enhance productivity, each comes with distinct cybersecurity, data privacy, and accuracy considerations.

Key Risks and Considerations:

  • Data Privacy: Like any AI tool, uploading sensitive business information—even for context—can create security risks if the platform retains or learns from that data.

  • Source Reliability: Perplexity provides sources, but the quality of those sources varies. Teams may mistake citation for credibility.

  • Policy Compliance: If your company has AI usage guidelines, Perplexity might fly under the radar unless explicitly addressed.

What You Should Do

  1. Identify what tools your employees are using and for what purposes.
  2. Educate teams on the appropriate use of AI platforms—including differences between tools like ChatGPT and Perplexity.
  3. Update your AI usage policy to include guidelines for search-based AI tools and real-time data tools.
  4. Monitor usage and feedback to ensure these tools are driving value—not exposing risk.

In the AI era, knowledge is power—but only if it’s managed securely and strategically. Understanding the differences between tools like Perplexity AI and ChatGPT is a critical first step in making informed, responsible decisions about how your business uses artificial intelligence.

Skip to content