Google is gearing up for a significant shift. Until now, the company has maintained its search service as a free offering, which has been a substantial revenue generator. However, the tech giant is contemplating changes to its policy, considering charging for 'premium' features, likely to be generated by advanced AI.
Not long ago, Google experimented with integrating generative AI snapshots into its search feature. This allowed users to see a summary of their searched topics, positioned above the AI-generated search results.
However, Google now seeks to innovate. According to a Financial Times report, this could mark the first instance where the company would impose a fee for using its search engine services.
Following the release of ChatGPT, Google has sensed a shift in the digital landscape, recognizing the need to reinvent its business model around AI technologies, nearly one and a half years after ChatGPT's arrival.
Google is exploring options to bundle AI features with premium subscriptions. It’s been reported that the company has already offered the Gemini AI Assistant feature in Gmail and Google Docs.
Source: aajtak
According to reports, engineers are working on this technology, though the final decision by executive teams remains pending. Yet, traditional search engine functions are expected to remain free. The company is also considering displaying ads to subscribers.
With search-related ads contributing to Google’s income of over 175 billion dollars last year—more than half of the company’s total earnings—it's understandable that Google is looking to protect this revenue stream, especially in light of the competition from ChatGPT.
ChatGPT’s rapid and accurate response to a wide array of queries presents a threat to traditional search habits, a concern for Google. The company began working on an AI-powered search engine last May but wishes to keep the experimental features separate from the main search engine.
Delivering such AI-generated search results could see Google incurring significantly higher resource costs than traditional methods. Hence, the company intends to offer these services to a selective user base, potentially as part of the Google One subscription service.
