Perplexity AI Explained: Features, Pricing, Pros & Cons (2025 Guide)

by Uday

Perplexity is an advanced “answer engine” powered by OpenAI’s GPT-5, designed to provide fast, accurate, and trustworthy information with clear sources. Unlike traditional search engines, it communicates conversationally, making it easier to get precise answers to complex queries.

In this guide, we’ll explore Perplexity’s origins, key features, pricing plans, practical uses, advantages, and limitations. We’ll also touch on controversies and what the future may hold for this intelligent search tool. Whether you’re a casual user or an AI enthusiast, this detailed breakdown will help you understand how Perplexity stands out in the evolving landscape of AI-powered information.

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What is Perplexity: Explained

Perplexity is an AI-powered search engine and chatbot, founded in 2022 by Aravind Srinivas, Denis Yarats, and Andy Konwinski. Its first tool, Perplexity Ask, launched the same year and was later rebranded as Perplexity in February 2023, accompanied by a Chrome extension.

The platform experienced rapid growth, reaching two million users by March 2023 and nearly fifteen million monthly users by October 2024, reflecting its global popularity. Unlike Google, Perplexity doesn’t just provide links—it delivers summarized answers with references, drawing from live internet data.

Powered by OpenAI’s GPT-5, it can handle complex queries and provide up-to-date information without a fixed knowledge cutoff. Recent additions include Internal Knowledge Search for personal files and Spaces, a feature for saving and sharing research. In November 2024, Perplexity introduced sponsored questions and integrated paid media.

It also launched a shopping tool, allowing users to research and purchase products directly, a feature later mirrored by ChatGPT Search. The latest version, Perplexity 2.250731.0 (August 2025), introduces GPT-5 enhancements, faster responses, bug fixes, and new capabilities, including video generation with inline playback.

What is Perplexity and Its Features in Detail

Perplexity offers a range of powerful features, making it useful for students, professionals, writers, and casual users. Here’s a detailed breakdown:

Conversational Interface
Perplexity understands natural language like a real person. No need for exact keywords or technical phrasing—it replies in a chat format, making interactions easy and intuitive.

Real-Time Web Browsing
It searches the internet live for up-to-date information. Recent events are included in responses, unlike many bots that rely on outdated training data.

Cited Sources
Every answer includes clickable references. Users can verify claims and explore original content, making it ideal for research and academic work.

Follow-Up Question Support
Perplexity remembers context during a session, allowing natural conversations without repetition, which makes searches smoother and more human-like.

Focus Mode
Filter results by content type—academic papers, YouTube videos, news, or social media—to get highly relevant answers.

Multimodal Capabilities
Pro users can upload images, charts, or screenshots for analysis, extending the tool’s usefulness beyond text-based queries.

Minimal Ads & Clean Design
Unlike ad-heavy search engines, Perplexity focuses on content, providing a distraction-free experience.

Video Generation
Recent updates allow Pro and Max users to create eight-second video clips with audio.

Perplexity Finance
Provides market data tools, particularly for Indian users, aiding investors and researchers.

Internal Knowledge Search
Search both personal files and the web for tailored, accurate answers that are helpful for organizations.

Spaces
Save and share research threads. Organize content like a personal or public library.

Discover Page
See trending questions, topics, and summaries in a personalized news and research feed.

How Perplexity AI Works

Perplexity combines a search engine, chatbot, and summarizer. Here’s how it works step by step:

  • Natural Language Understanding – Analyzes your query to understand meaning, not just keywords.
  • Web Search and Retrieval – Browses the web in real time, collecting data from news, blogs, research, and videos.
  • Summarization and Answer Generation – Filters noise and produces concise, easy-to-read answers.
  • Citations and Transparency – Provides references for all critical information.
  • Contextual Follow-Up – Remembers the context during the session to facilitate natural follow-up questions.

Perplexity Pricing and Access

Free Plan:

  • Unlimited quick searches, five advanced searches daily
  • Upload up to three files per day

Pro Plan ($20/month or $200/year):

  • Unlimited quick searches and 300 advanced searches daily
  • Unlimited file uploads, image analysis, video generation, and finance tools
  • Access to models like GPT-4o, Claude-3, and Sonar Large
  • $5 monthly API credit

Supported Platforms

Perplexity is accessible worldwide on:

  • Web browsers (Chrome, Safari, Edge)
  • Mobile apps (iOS and Android)
  • Mac desktop app
  • Chrome extension for easy browsing

The interface is smooth, clean, and distraction-free, allowing users to choose the platform that best suits their preferences.

Perplexity’s Real-Life Use Cases

Perplexity is more than a chatbot or search engine—it serves a wide range of real-world purposes. Students, writers, professionals, and travelers can all benefit from this. Here are the most common use cases:

Academic Research
Students and researchers use Perplexity to simplify complex topics. It provides clear summaries with reliable citations, making it easy to verify original academic papers. This saves time and enhances understanding of complex subjects.

Content Writing
Bloggers, journalists, and writers rely on Perplexity for accurate facts and references. It enables the exploration of multiple perspectives and avoids plagiarism by efficiently summarizing information, supporting faster and higher-quality writing.

Skill Learning
Perplexity helps learners understand new subjects in beginner-friendly language. From science to history and technology, it accelerates learning and supports continuous personal growth.

Daily Q&A
Users turn to Perplexity for quick fact-checking, definitions, or updates on current events. With cited sources, it acts like a knowledgeable friend available 24/7, reducing the need for endless scrolling.

Technical Support
Developers, scientists, and engineers use Perplexity for coding help, technical explanations, or step-by-step guides. Real-time web data ensures that technical solutions are up-to-date for both beginners and professionals.

Travel Planning
Travelers benefit from accurate, summarized information on destinations, routes, weather, and cultural tips. Perplexity simplifies trip planning while providing trustworthy references.

Professional Work
Professionals and teams use Spaces to organize research, collaborate on projects, and generate reports or presentations. It streamlines workflows and centralizes knowledge for business or remote work environments.

Perplexity Limitations

Despite its capabilities, Perplexity has some drawbacks:

  • Dependence on Web Content Quality – Answers rely on the quality of internet sources, which can be outdated, biased, or inaccurate.
  • Limited Creativity – Unlike ChatGPT, Perplexity focuses on factual information rather than storytelling, jokes, or creative ideas.
  • Lack of Deep Personalization – It doesn’t remember past sessions permanently, limiting personalized guidance.
  • Confusion with Complex Queries – Multi-layered or vague questions may yield oversimplified or off-target answers.
  • Pro Features Behind Subscription – Advanced capabilities, such as unlimited uploads, image analysis, and video generation, are available with the Pro plan.
  • No Offline Access – Perplexity requires an active internet connection, which limits its usability in offline scenarios.

Perplexity and Controversies

Perplexity has faced copyright-related disputes. In 2024, Forbes and other media outlets, including The New York Times and Condé Nast, sent legal notices citing data misuse. Currently, NewsCorp is pursuing a lawsuit for large-scale copyright infringement. These cases highlight ongoing concerns about AI and intellectual property rights.

Perplexity’s Future Plans

Perplexity is continuously updated with new features. Recent additions include booking tables on OpenTable and price alerts for products. Future updates may focus on personalization, creative tools, and expanding global accessibility. Its rapid growth suggests continued improvement and innovation in AI-powered search.

Perplexity Limitations

Despite its power, Perplexity has some drawbacks that users should be aware of:

Dependence on Web Content Quality
Perplexity sources data directly from the internet. If online content is outdated, biased, or incorrect, its answers may reflect the same issues. It cannot generate new facts beyond the available sources, so the reliability of the answer depends entirely on the quality of the web content.

Limited Creativity Compared to ChatGPT
Unlike generative AI tools like ChatGPT, Perplexity focuses on factual accuracy. It is not suitable for creative writing, storytelling, jokes, or imaginative brainstorming. It is designed for research, learning, and clarity of knowledge rather than creative content.

3. Lack of Deep Personalization
Perplexity does not retain long-term memory of past searches. Each session is independent, making it less personalized than AI tools with persistent memory or adaptive learning.

4. Confusion with Complex or Vague Queries
It may struggle with multi-layered or ambiguous questions. Broad or unclear queries can lead to oversimplified answers. Direct and specific questions work best; complex research may require rephrasing multiple times.

5. Pro Features Locked Behind Subscription
Many advanced capabilities—such as unlimited file uploads, image analysis, video generation, and large-scale advanced searches—are exclusive to the paid Pro plan. Free users may find these limitations restrictive.

6. No Offline Access
Perplexity requires a live internet connection to function. It does not function offline or as a local knowledge database, which limits its use in areas with poor connectivity.

Perplexity and Controversies

Perplexity has faced legal and copyright challenges. In 2024, Forbes accused it of data misuse, while The New York Times and Condé Nast issued legal notices. Currently, NewsCorp is suing Perplexity for large-scale copyright infringement. These cases highlight ongoing concerns regarding AI use of media content and intellectual property rights.

Future Plans

Perplexity is actively evolving. Recent updates include OpenTable booking integration and product price alerts, demonstrating continuous improvement in performance and usability. Developers are likely to introduce more personalization features and creative tools in future updates. Its rapid growth and frequent updates suggest that it will continue to enhance functionality and expand its global reach.

Frequently Asked Questions (FAQs) About Perplexity

What is Perplexity?

Perplexity is an AI-powered “answer engine” and chatbot that provides fast, accurate, and trusted responses. It uses OpenAI’s GPT-5 and supports live web browsing, citations, and conversational interactions.

How is Perplexity different from Google or ChatGPT?

Unlike Google, Perplexity provides summarized answers with citations, rather than just links. Compared to ChatGPT, it focuses on factual accuracy and research rather than creative writing or storytelling.

Is Perplexity free to use?

Yes. The free plan offers unlimited quick searches, five advanced searches daily, and the ability to upload three files per day. Advanced features, including unlimited file uploads, image analysis, and video generation, are exclusive to the Pro plan.

What devices and platforms support Perplexity?

Perplexity works on web browsers (Chrome, Safari, Edge), iOS and Android apps, a Mac desktop app, and via a Chrome extension.

Can Perplexity handle complex queries?

Yes, but it works best with clear, specific questions. Multi-layered or vague queries may require rephrasing to get accurate answers.

Does Perplexity store personal data or retain past search history?

No. Perplexity does not retain long-term memory between sessions. Each session starts fresh, offering limited personalization compared to AI tools that utilize persistent memory.

Can I use Perplexity offline?

No. Perplexity relies on live internet access for up-to-date information and does not work offline.

Conclusion

Perplexity is a powerful AI “answer engine” that combines the intelligence of GPT-5 with live web browsing, citations, and a conversational interface. It offers a wide range of features—from academic research and content writing to travel planning, technical support, and professional collaboration. Its focus on factual accuracy, summarized answers, and cited sources makes it a reliable tool for students, professionals, and casual users alike.

While it has limitations, such as dependence on web content, restricted Pro features, and no offline access, Perplexity continues to evolve rapidly.

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