Google mulls charge for AI search

Do we all realize what it means if some of us start paying search engines to get AI enhanced, ad free search results while the non payers would get "poor" and ad polluted search results? Part of the value that internet brings to our lives is access to data, liberalization of information, equalization. #AI enhanced search as a premium is a target to bring a new segmentation and change how #advertising world works.

Do readers find themselves making any less use of search engines today, nearly a year and a half into what I would call the "generative AI" era? ? My answer to this question is a "no", but, perhaps I am in the minority? ? Or am I? ? The notion Microsoft's debut of OpenAI's chatbot, ChatGPT, would displace search engines - primarily Google search - popped up as a feature of ChatGPT's debut. The premise appears to be the whole community of humans using search engines, consumers, advertisers/marketers, researchers, etc. would all promptly pivot to using ChatGPT (and its competitors as they rapidly became available). The beneficiary? Microsoft. ? As Satya Nadella, Microsoft CEO, made clear in the recent past within the context of news story discussions of the US Department of Justice antitrust investigations into Google, the business, the switch has not happened. Google continues to reign as the most popular search engine, with no changes forthcoming in the near term future. ? Keeping this history in mind, I respectfully disagree with any interpretation yesterday's news Google, the business, is looking into bolting Gemini Advanced (or another large language model, LLM, yet to be commercially branded) onto plain old Google search as a premium option as a tacit acknowledgement Google's search engine marketing business knows it is only a matter of time before generative AI takes over their "cash cow". ? What the news tells me, as someone who has successfully traded Alphabet call options in the past, is the Google search advertising business is exhibiting healthy interest in experimentation; actually a lot healthier interest than some of its big tech competitors. ? I do not know the answer as to why Google has decided to experiment in this way, but I do know I am keen to follow the story as it develops. ? What do other options traders think? Is this a bullish indicator for Alphabet calls? ? #searchengines #aibusiness #googlesearch #optionstrading ? https://lnkd.in/eiPVdTUm

I think everyone has already seen the news about Google's Search Generative Experience (SGE), which may lead to a substantial loss of advertising revenue for publishers, potentially amounting to $2 billion. This concerns significant costs for anyone who wants to sell and buy advertising. If I were asked whether I support the implementation of artificial intelligence or not, I would definitely answer yes. However, as we know, the world is not black and white. The AI-powered search engine is expected to cause a significant decline in search traffic, ranging from 20% to 60%. Raptive's researchers found that some keywords showed no SGE results, while others did feature links to Raptive websites, leading to an expected average traffic loss. This means that the market needs to adapt to the new realities again and deal with the operation of AI and specifically keywords that will either lead to the growth of your business or cause its stagnation. https://lnkd.in/dzvVzZC3 #ai

If #Google does do this, then it looks as though it sees: 1. Advanced AI tools as something that is a niche rather than mass market; 2. A way to generate a new high margin revenue stream as the core Search business sees slower momentum although there are question marks over the scale of the impact ($1bn of revenues from this would mean only around 1% extra to operating profit); 3. May be having questions whether AI will fundamentally change #Search or should be seen as an effectively an improvement to the existing model. Note the comment also that #ChatGPT has not helped Microsoft’s Bing gain market share - which raises further questions. As usual, this is not investment advice. #Alphabet #Microsoft

While not entirely accurate (Google also charges consumers for their 'One' data storage service) it only really brings them in line with ChatGPT 4. If they can demonstrate their #AI model is superior and the cost is low, then maybe. But a paid model will get fewer users, so less #data, which represents an opportunity cost if you value data (as they do). These models, and others, are great for leveraging ones time and improving #productivity, but if they are to be used globally changes are needed... Google considers charging for AI-powered search in big change to business model - https://on.ft.com/3xoZPYA via @FT

???????????? ???????????? ???? ?????? ???? ??????????: ?? ?????? ??????-????-???????? ??????????? FT Strategies announced yesterday Google's plans about a premium, #AI-powered search model. This concept involves using machine learning, natural language processing, and other AI methods to understand, predict, and improve the responses to user queries. Instead of just matching keywords, AI-powered search engines can understand the intent behind the search, provide more relevant and personalized results, handle complex queries, and even anticipate needs before a user fully articulates them. It means a more intuitive, efficient, and smarter search experience that goes beyond traditional search algorithms. For shoppers and businesses, searching online might get a whole lot smarter — but at a price! ?? ????????????: Before: Relied on SEO and traditional ads for visibility. After: Leverages AI search insights for hyper-targeted campaigns and real-time trend analysis, meaning: ? Enhanced customer insights and trend predictions. ?More precise targeting and personalization opportunities. ?The potential for higher marketing ROI with smarter tools. ??? ??????????????????: Before: Struggles to match the data-driven marketing of larger competitors. After: Accesses similar AI tools, leveling the playing field with personalized customer experiences, leading to: ?Access to big-data analytics, even for smaller players ?Improved product discoverability and shopping experiences. ?The necessity to balance organic vs. paid AI-enhanced search strategies. ?? ??????????????????: Before: Scrolling through pages of search results. After: Receiving pinpointed recommendations based on style preferences and past behavior, promising: ?More intuitive and tailored search results. ?Streamlined shopping journeys. ?Potentially faster, more accurate answers to queries. ?? This would mean overall: ??Elevated Search Experiences: A richer, more intuitive search experience could change how we find and interact with brands online. ??Ad Strategies: The need to reassess and possibly reinvent digital ad strategies will be crucial as Google's traditional search keeps its ad-supported model. ??Consumer Behavior: Shopping habits may evolve with potentially quicker, more informed purchasing decisions. ?? Deep Dive: Data-Driven Decisions: ?? Brands can make smarter inventory and design choices, predicting trends before they peak. Cost of Innovation: ?? Weighing the investment in AI search against potential returns. Consumer Expectations: ?? Shoppers will anticipate more accurate, timely, and relevant search results and product offerings. ?? How are you preparing for these upcoming changes in AI-powered digital marketing? Will you invest in Google's premium features or double down on organic strategies? #GoogleAI #MarketingStrategy #RetailInnovation #ConsumerInsights #FutureOfSearch LinkedIn News Europe

Google's Bold Leap: Introducing Subscription-Based Al Search - The end of internet search as we used to know it? Google's latest consideration to introduce a paid, AI-powered search option is not just a potential pivot in its business model but a significant marker of the transformative power of artificial intelligence in reshaping the internet as we know it. As highlighted in today's Financial Times cover article, Google is contemplating a monumental shift by adding "premium" AI features to its search services, an unprecedented move that could redefine user experience and competitive dynamics in the tech world. This development is particularly striking given that it would be the first instance of Google placing any of its core products behind a paywall, signaling a strategic departure from its long-standing revenue model primarily based on advertising. The tech giant, renowned for its free consumer services, is exploring this new terrain in response to the disruptive impact of generative AI technology on its traditional search business. What's driving this potential change? It appears to be a mix of the need to innovate in the face of a rapidly changing technological environment and the quest to find new revenue streams as AI threatens to upend the lucrative advertising model that has been Google's bread and butter.As Google weighs its options, including integrating certain AI-powered search features into its premium subscription services, it's clear that the stakes are high. This move could enhance the value proposition of its existing subscription offerings, which already include access to the Gemini AI assistant in Gmail and Docs, but it also raises questions about accessibility and the future of the open web. The introduction of a paid tier for enhanced search capabilities underscores a broader trend in the tech industry towards more personalized, efficient, and intelligent digital experiences. However, it also prompts a reflection on what this means for the democratization of information and the balance between innovation and inclusivity. How will this shift affect the competitive landscape? What implications will it have for users, businesses, and the broader ecosystem? Join the conversation and share your thoughts on this groundbreaking development. #AI #DigitalTransformation #TechNews #Google Read the full article on Financial Times: https://lnkd.in/eScx9h9n

Google's Bold Leap: Introducing Subscription-Based Al Search - The end of internet search as we used to know it? Google's latest consideration to introduce a paid, AI-powered search option is not just a potential pivot in its business model but a significant marker of the transformative power of artificial intelligence in reshaping the internet as we know it. As highlighted in today's Financial Times cover article, Google is contemplating a monumental shift by adding "premium" AI features to its search services, an unprecedented move that could redefine user experience and competitive dynamics in the tech world. This development is particularly striking given that it would be the first instance of Google placing any of its core products behind a paywall, signaling a strategic departure from its long-standing revenue model primarily based on advertising. The tech giant, renowned for its free consumer services, is exploring this new terrain in response to the disruptive impact of generative AI technology on its traditional search business. What's driving this potential change? It appears to be a mix of the need to innovate in the face of a rapidly changing technological environment and the quest to find new revenue streams as AI threatens to upend the lucrative advertising model that has been Google's bread and butter.As Google weighs its options, including integrating certain AI-powered search features into its premium subscription services, it's clear that the stakes are high. This move could enhance the value proposition of its existing subscription offerings, which already include access to the Gemini AI assistant in Gmail and Docs, but it also raises questions about accessibility and the future of the open web. The introduction of a paid tier for enhanced search capabilities underscores a broader trend in the tech industry towards more personalized, efficient, and intelligent digital experiences. However, it also prompts a reflection on what this means for the democratization of information and the balance between innovation and inclusivity. How will this shift affect the competitive landscape? What implications will it have for users, businesses, and the broader ecosystem? Join the conversation and share your thoughts on this groundbreaking development. #AI #DigitalTransformation #TechNews #Google Read the full article on Financial Times: https://lnkd.in/eScx9h9n

Humans vs AI: Google Google looking to change business model. Interesting front-page headline in the Financial Times just now reporting that Google is looking to change its business model - and put AI-powered search behind a paywall. If you don't just want the answer to your query but prefer to wade through pages of algorithmically-manipulated and ad-sponsored blue links, those'd still be available for free. Gartner already predicts that AI will mean search traffic will drop by a quarter in the next 20 months, as people use AI for answers as opposed to the Google link lottery. More generally, it's a signal of just how much AI could be disruptive to advertisers. Are we moving to a world where advertising needs to focus only on those who can't afford the truth? https://lnkd.in/dgP--VQj

Important development though unsurprising. On one hand Google's huge advertising business is under increasing pressure from regulators and competitors, and on the other GenAI and LLM chatbots are much more expensive to run than search. What's most interesting to me is how the need to change their business model will change the culture. Google has since its inception promoted an ideology that seemed to truly believe that free was good and paying for services was evil, which of course isn't the case at all. Neither is necessarily more evil or good than the other -- it depends on how it's done. Incentives led companies down a toxic path of surveillance to increase ad sales. Paying for services can better align interests with customers, but only if in an environment that has sufficient competition to keep companies from doing harmful things to people, which unfortunately is not the case across much of technology today. For example, newspapers historically did a good job of providing journalism for the public by employing a combination of both subscriptions and advertising, but found that when advertising became larger than subscriptions, journalism suffered. That's one of the reasons why journalism suffered so terribly from freeism on the Web (perverse incentive of clicks). That said, the SaaS model is also being abused big-time today. In the last year we've been charged by software vendors for services we didn't order while others have played all kinds of unethical games in marketing tactics to increase revenue. Suffice to say the culture of the industry is unhealthy. Increased competition and reduction of lock-in would help.