Perplexity AI is an answer engine powered by large language models (LLMs) – currently utilising models like OpenAI’s GPT-4o and others – that provides concise answers to questions, accompanied by citations to its sources. Unlike a traditional search engine, Perplexity AI doesn’t simply list links; it synthesises information from multiple sources to directly address the user’s query.
As of December 2025, Perplexity AI operates on a freemium model in Australia, with a free tier offering limited daily searches and a ‘Pro’ subscription (AUD $30/month as of December 2025) providing unlimited searches, file uploads for analysis, and access to more powerful LLMs. A key feature is ‘Copilot’, which allows for conversational refinement of searches – users can ask follow-up questions to narrow results. Perplexity AI now includes image generation capabilities and can process visual inputs. Data residency remains a consideration for Australian businesses handling sensitive information; Perplexity AI’s data processing locations are detailed in their privacy policy, and compliance with Australian Privacy Principles is the responsibility of the user. In 2026, Perplexity plans to expand its API access for developers, potentially enabling integration with Australian marketing automation platforms. Announced for 2027 is a focus on enhanced source verification and bias detection.
Essentially, Perplexity AI functions as an AI-powered research assistant, delivering summarised, sourced answers rather than a list of web pages.
