Daily Management Review

Google may build paid AI features into search


According to the Financial Times, US-based Google, owned by Alphabet Inc., is thinking of charging for the usage of new premium features of its search engine based on generative artificial intelligence (AI).

Google didn't charge for any of its search engine's functions before this. Giving up on this strategy will be the largest change in the history of this segment.

The business is specifically thinking about adding many search AI tools to its premium subscription services, which are already available to users of its Gmail email service and Docs document service.

Sources note that the company’s management has not yet decided whether or when to roll out these capabilities, but the technology required to do so is currently being built.

Even with subscriptions, Google's traditional search will still be free, but it will now display advertising. More than half of the company's income from last year, or $175 billion, came from search and related advertising.

The FT reports that ChatGPT, a language model that was introduced in November 2022 and is capable of providing prompt, comprehensive answers to several queries, poses a threat to this revenue stream.

source: ft.com