Google is exploring the possibility of introducing paid “premium” features that utilize generative artificial intelligence (GenAI), marking a significant shift in its search business, media reports suggested. This would be the first time the company considers putting some of its core product behind a paywall, highlighting its ongoing struggle with a technology that poses a threat to its advertising business. According to reports, Google is contemplating including specific AI-powered search features in its premium subscription services, which already grant access to the new Gemini AI assistant in Gmail and Docs.
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Although engineers are working on the required technology for implementing this service, company executives have yet to make a final decision on whether or when to launch it. Notably, Google’s traditional search engine will remain free, and advertisements will continue to appear alongside search results for both subscribers and non-subscribers.
However, introducing charges would mark the first instance of Google making users pay for enhancements to its core search product. This move presents a dilemma for the company as it aims to embrace the latest AI innovations while safeguarding its most profitable driver, given that search and related ads generated over $175 billion in revenue last year, accounting for more than half of its total sales.
The rise of ChatGPT, launched by OpenAI in November 2022, has prompted Google to swiftly respond to the competitive threat posed by this immensely popular chatbot. ChatGPT’s ability to provide quick and comprehensive answers to various queries jeopardizes the relevance of traditional search engine results and the lucrative advertisements accompanying them.
Experimental AI-powered search service
In May 2023, Google initiated testing of an experimental AI-powered search service that offers more detailed answers to queries, alongside links to additional information and advertising. However, it has been slow to integrate any features from its “Search Generative Experience” experiment into its main search engine.
These types of search results, including an “AI-powered snapshot,” are more resource-intensive for Google to provide compared to its traditional responses due to the increased computing requirements of generative AI. Access to the Search Generative Experience has been limited to a select few users, including subscribers to Google One, a bundle offering benefits like extra cloud storage for a monthly fee.
With our new generative AI experience in Search, you’ll get even more from a single search. You’ll be able to quickly make sense of information with an AI-powered snapshot, pointers to explore more and natural ways to ask. #GoogleIO pic.twitter.com/jgzz97DzEv
— Google (@Google) May 10, 2023
In contrast, Microsoft, which has an extensive partnership with OpenAI, introduced enhanced GPT-powered search and a chatbot named Copilot in its Bing search engine over a year ago. However, these new AI features have had minimal impact on Bing’s market share, which significantly lags behind Google.
Impact on Google’s advertising business
Some analysts caution that Google’s advertising business could suffer if its search engine were to provide more comprehensive AI-generated answers that eliminate the need for users to click through to advertiser websites. Additionally, many online publishers reliant on Google for internet traffic fear a decline in site visits if Google’s AI-powered search directly extracts information from their web pages and presents it to users.
Google recently introduced a premium tier to its Google One consumer subscription service, catering to users seeking to utilize its advanced Gemini chatbot. Furthermore, Gemini has been integrated into Workspace, a suite of online productivity applications such as Gmail and Docs.
The exact manner in which Google plans to incorporate AI-powered search into its paid services, which offer various pricing tiers, and the timeline for launching the AI-powered search offering remain unclear. However, sources familiar with the company’s thinking suggest that Google may eventually introduce certain elements of its experimental AI-powered service into its main free search engine.
Google has stated that it is not currently working on or considering an ad-free search experience. However, the company affirms its commitment to developing new premium capabilities and services to enhance its subscription offerings across Google.
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