Google is reportedly contemplating instituting payment for newly developed “premium” attributes utilising generative artificial intelligence. This would majorly revise its searching business in a first-time venture into paid services. This transition indicates the technological challenge Google faces which potentially puts its advertising revenue at risk, nearly 18 months into ChatGPT’s initial release.
The tech giant is exploring the possibility of integrating distinctive AI-empowered searching features into its premier subscription package which already grants access to its recently launched Gemini AI assistant for Gmail and Docs, disclosed three individuals apprised of its strategies.
While measures to devise the technical underpinning for the roll-out are underway, the chief executives haven’t confirmed if or when the launch will occur, according to one source. The conventional Google search engine will remain complimentary with continuous visibility of ads parallel to search outcomes, even for paying customers.
This decision will mark a departure from Google’s long-standing practice of supplying free-of-charge consumer services, financed exclusively via advertising, as it introduces paid enhancements to its fundamental search function. In the previous annum, Google’s search and corresponding advertisements yielded $175 billion (£128 billion), accounting for more than half of the total income, thus posing a dilemma to the firm on how to capitalise on exciting AI inventions while maintaining its primary income source.
Post ChatGPT’s introduction by OpenAI in November 2022, Google has been pressurized to counter the challenge posed by the hugely adopted chatbot. ChatGPT swiftly and comprehensively answers multiple queries, potentially rendering obsolete a conventional search engine’s link list and the profitable advertisements displayed alongside them.
Last May, Google initiated the trial phase of an experimental AI-driven search service showcasing comprehensive responses to inquiries, while also continuously providing users with links to further details and advertisements. However, the incorporation of elements from this so-called “Search Generative Experience” experiment into its main search engine has been sluggish.
Delivering these types of search outcomes, such as an “AI-driven snapshot”, is more expensive for Google compared to its traditional responses, as generative AI necessitates greater computing resources. Access to the SGE has been established for a limited segment of users, comprising some subscribers of its Google One package which includes benefits like extra cloud storage, accessible for a monthly subscription cost.
Despite the introduction of enhanced GPT-powered search and the chatbot Copilot to Microsoft’s Bing search engine over a year ago, through its collaboration with OpenAI, the impact on Bing’s market standing has been negligible, as it continues to trail significantly behind Google. Critics argue that Google’s advertising model could be negatively impacted if users no longer needed to click on its advertisers’ websites due to improved AI-generated searches. There is also concern from online publishers that rely on Google for visibility, that the implementation of AI-powered searches could result in reduced site visits as Google could directly present collected information to users.
Recently, Google introduced a superior option to its Google One consumer subscription services for users wanting to utilise its high-level Gemini chatbot. This addition has extended to Workspace, Google’s collection of online productivity applications like Gmail and Docs. However, how the company plans to implement an AI-powered search with these services, which come in various price categories, is still yet to be defined. Notably, aspects of its AI-influenced service could still be incorporated into its primary, free search engine over time, insiders suggest.
Contrary to speculation, Google stated that it is neither considering nor implementing an ad-free search experience, but it is building new superior features and services to boost its subscription offerings across the board. Google claimed, “We have been constantly upgrading Search to allow people to access information in a manner that is most organic to them; our AI experiments in Search have already handled billions of queries and we’re experiencing positive Search query expansion in all our primary markets. We’re persistently striving to enhance the product to address novel user needs.” Currently, the company has no new announcements.
Copyright The Financial Times.