In an era where artificial intelligence (AI) is reshaping the digital landscape, Google, the world's leading search engine with earnings of $175 billion last year, finds itself at a crossroads.
The emergence of ChatGPT, a conversational AI developed by OpenAI, has prompted Google to accelerate its own AI initiatives. However, this move comes with significant implications for its business model, as reported by Danish TV2.
A Shift in Search
Feeling the competitive pressure from ChatGPT, Google is in the process of developing its own counterpart. Analysts express concerns over Google's ability to keep pace with ChatGPT's growing popularity, which poses a potential threat to Google's business model.
According to reports from TV2 and insights from the news agency DPA, Google has been doubling down on its AI efforts with projects like Gemini, designed to integrate with services such as Gmail, and has also added more AI functions to its smartphones.
The introduction of a new AI-based function would represent a significant shift in Google's search operations, according to news agencies.
Historically, Google has relied heavily on ad revenue generated from its search platform. But now, AI search technology is changing the game, potentially cutting down on the usual ways ads are used.
The Financial Times, based on information from three insider sources, reports that Google is considering a payment model for its new AI-powered search services. This comes amid analysts' concerns that Google's ad revenue could potentially be hit hard by AI solutions, as they eliminate the need for users to interact with ads.
Online publishers dependent on Google for site traffic are worried that such a move, unless Google's new AI technology directly promotes their content to consumers, might lead to a decrease in traffic from ads.
While Google's renowned search engine is expected to remain free, indications are that Google may start charging for some of its key services.
