Google is reportedly contemplating the introduction of paid “premium” options powered by generative AI to its search engine, The Monetary Occasions reported on April 2.
Sources near the matter informed the newspaper that Google is exploring the potential for incorporating AI-enhanced search capabilities into its present suite of premium subscription companies.
The suite already consists of entry to Google’s newest AI improvements, such because the Gemini AI assistant built-in inside Gmail and Google Docs.
Whereas the technological infrastructure for these premium options is below growth, Google’s government workforce has but to make a last resolution on the launch and its specifics.
Shifting away from advert income
Regardless of the proposed modifications, Google’s conventional search functionalities are anticipated to stay freely accessible, with commercials persevering with to accompany search outcomes — even for subscribers.
The potential shift to a paid mannequin can be a big departure for Google, which has traditionally supplied client companies freed from cost, relying solely on promoting revenues.
In response to the report, the corporate just isn’t contemplating an ad-free search expertise however is dedicated to creating new premium capabilities and companies to boost its subscription choices.
The tech big highlighted its ongoing efforts to reinvent search to satisfy evolving consumer wants by way of generative AI, indicating substantial question development in main markets with out confirming any particular plans for the longer term.
Google’s search and associated promoting ventures generated $175 billion throughout 2023, accounting for over half of its complete income. This poses a strategic dilemma for the corporate: adopting cutting-edge AI improvements with out jeopardizing its most profitable income supply.
Experimental SGE companies
The strategic consideration comes at a time when Google’s promoting enterprise faces potential disruption from superior AI applied sciences, almost a yr and a half following the launch of OpenAI’s ChatGPT.
In response, Google launched an experimental AI-powered search service in Could 2023, aiming to supply extra detailed solutions whereas sustaining the supply of hyperlinks and commercials. Nevertheless, it has been sluggish to undertake options from its “Search Generative Expertise” (SGE) into the principle search engine.
The usage of generative AI in search outcomes requires considerably extra computing sources, making these superior options extra expensive for Google to supply. At the moment, entry to SGE is proscribed to a choose group of customers, together with some subscribers to the Google One service.
SGE offers varied options, together with the power to ask extra advanced questions, obtain subject snapshots, and observe up on outcomes, plus artistic instruments. The service launched AI picture technology in October 2023, offering performance much like a Midjourney and different apps.
No matter how Google’s AI-powered companies develop, the corporate will inevitably compete with OpenAI’s ChatGPT and Microsoft’s Bing AI, each of which have established income fashions combining free and premium entry to content material.