The Financial Times reported on April 2 that Google is considering introducing a paid ‘premium’ feature based on generative AI in its search engine.
Sources close to the matter told the paper that Google is exploring the possibility of integrating AI-enhanced search capabilities into its existing suite of premium subscription services.
The suite already includes access to Google's latest AI innovations, such as the Gemini AI assistant integrated into Gmail and Google Docs.
The technical infrastructure for these premium features is under development, but Google executives have not yet made a final decision on launch and details.
Get away from advertising revenue
Despite the proposed changes, Google's existing search features are expected to continue to be accessible for free, and even subscribers are expected to continue to see ads in search results.
A potential shift to a paid model would be a significant departure for Google, which has historically provided consumer services for free, relying solely on advertising revenue.
According to the report, the company is not considering an ad-free browsing experience, but is committed to developing new premium features and services to enhance its subscription service.
The tech giant highlighted its ongoing efforts to reinvent search to meet evolving user needs through generative AI. This represents a significant increase in queries from key markets, without confirming specific plans for the future.
Google's search and related advertising ventures will generate $175 billion in 2023, accounting for more than half of its total revenue. This poses a strategic dilemma for the company. Adopting cutting-edge AI innovations without compromising your most profitable revenue streams.
Experimental SGE service
This strategic consideration comes nearly a year and a half after the launch of OpenAI's ChatGPT and as Google's advertising business faces potential disruption from advanced AI technology.
Accordingly, Google launched an experimental AI-based search service in May 2023 with the goal of providing more detailed answers while maintaining link and ad serving. However, it has been slow to adopt the capabilities of the “Search Generating Experience” (SGE) into native search engines.
Using generative AI in search results requires significantly more computing resources, making it more expensive for Google to offer these advanced features. Currently, access to SGE is limited to certain groups of users, including some subscribers to the Google One service.
SGE offers a variety of features, including creative tools and the ability to ask more complex questions, receive topic snapshots, and follow up on results. The service will introduce AI image creation in October 2023, offering similar functionality to Midjourney and other apps.
Regardless of how Google's AI-based services develop, the company will inevitably compete with OpenAI's ChatGPT and Microsoft's Bing AI. Both have established revenue models that combine free and premium access to content.