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Google’s Consideration of Premium AI Features
Google is reportedly contemplating the implementation of paid “premium” features fueled by generative AI into its search engine, as per The Financial Times. Sources close to the situation disclosed to the newspaper that Google is evaluating the potential integration of AI-enhanced search capabilities into its existing premium subscription services. These services already grant access to Google’s latest AI innovations, such as the Gemini AI assistant integrated within Gmail and Google Docs.
Despite being in the developmental stages, the technological framework for these premium features, Google’s executive team has not yet made a final decision on the launch and specifics. In a departure from its traditional reliance on ad revenue, Google’s standard search functionalities are anticipated to remain accessible for free, with advertisements accompanying search results even for subscribers.
Strategic Shift Towards Paid Subscriptions
The contemplated move to a paid model marks a significant shift for Google, historically providing consumer services without cost and relying exclusively on advertising revenues. Google does not seem to be considering an ad-free search experience but is concentrating on developing new premium capabilities and services to enhance its subscription offerings.
The tech giant emphasizes its commitment to reinventing search to cater to evolving user needs through generative AI. Notable query growth in major markets affirms the ongoing efforts, although specifics regarding future plans remain undisclosed. In 2023, Google’s search and associated advertising ventures amassed $175 billion, comprising over half of its total revenue.
This poses a strategic quandary for the company, aiming to embrace cutting-edge AI advancements without imperiling its most lucrative revenue stream. The consideration for more advanced features comes as Google’s advertising business confronts potential disruptions from sophisticated AI technologies, approximately eighteen months following OpenAI’s ChatGPT launch.
Experimental SGE Services
In response, Google rolled out an experimental AI-powered search service in May 2023. The service aims to furnish more elaborate answers while upholding the inclusion of links and advertisements. However, the assimilation of features from its “Search Generative Experience” (SGE) into the main search engine has been gradual.
The utilization of generative AI in search results demands substantial computing resources, rendering these advanced features more costly for Google to offer. Currently, access to SGE is confined to a select user base, including some Google One subscribers. SGE extends various features like the capability to pose intricate questions, receive topic summaries, delve further into results, and creative tools.
Additionally, AI image generation was introduced to the service in October 2023, presenting similar functionality to apps like Midjourney. Regardless of the development of Google’s AI-powered services, the company will inevitably face competition from OpenAI’s ChatGPT and Microsoft’s Bing AI, both featuring revenue models blending free and premium content access.
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