Google, under Alphabet Inc., is reportedly exploring the introduction of premium features for its AI-powered search engine, aiming to monetize its core products and stay competitive in the AI space. Despite potential subscription-based enhancements, Google assures that its traditional search engine will remain free with ads, amidst competition from industry giants like OpenAI and Microsoft.
4 April 2024 – Google, a subsidiary of Alphabet Inc. (GOOGL.O), is reportedly contemplating the introduction of premium features for its generative AI-powered search engine, as per sources familiar with the matter cited by the Financial Times on Wednesday. The tech giant is exploring various options, including integrating AI-powered search functionalities into its existing premium subscription services, such as the Gemini AI assistant accessible in Gmail and Docs.
While Alphabet’s shares experienced a slight dip of approximately 1% in extended trade, the potential move signals Google’s foray into monetizing core products within the rapidly evolving AI landscape. Notably, this initiative would represent Google’s first attempt at placing any of its fundamental products behind a paywall, emphasizing its strategic intent to assert dominance in the AI sector. Despite the introduction of premium features, Google reassured that its traditional search engine would remain free, with advertisements continuing to accompany search results, even for subscribers.
“We’re not working on or considering an ad-free search experience. As we’ve done many times before, we’ll continue to build new premium capabilities and services to enhance our subscription offerings across Google,” stated the company in an email response to Reuters. Google, renowned for pioneering the foundational technology driving today’s AI advancements, faces stiff competition from industry giants such as OpenAI, the creator of ChatGPT, and its backer, Microsoft (MSFT.O). – ref: Reuters
