Google is contemplating introducing “premium” features powered by generative artificial intelligence, which would be a significant shift in its search business. This proposed revamp to its primary revenue source would mark the first time the company has placed any of its core offerings behind a paywall, demonstrating its ongoing efforts to adapt to a technology that threatens its advertising model, nearly a year and a half after the debut of ChatGPT.
According to three individuals familiar with the plans, Google is exploring options that include adding AI-powered search features to its premium subscription services, which already provide access to its new Gemini AI assistant in Gmail and Docs.
While the engineers are working on the necessary technology to implement this service, the executives have not yet made a final decision on whether or when to launch it. Google’s traditional search engine would remain free of charge, and advertisements would continue to appear alongside search results, even for subscribers.
Nonetheless, the decision to charge for these enhancements would represent a significant departure for Google, which has historically offered its consumer services at no cost, relying solely on advertising revenue.
Last year, more than half of Google’s total sales came from search and related ads, creating a dilemma for the company. They must find a way to embrace the latest advancements in AI while preserving their most profitable revenue stream.
Since the launch of OpenAI’s ChatGPT in November 2022, Google has been scrambling to respond to the competitive threat posed by the wildly popular chatbot. ChatGPT’s ability to provide quick and comprehensive answers to many questions poses a challenge to the traditional search engine model, which relies on a list of links and the associated lucrative ads.
In response, Google began testing an experimental AI-powered search service in May of last year. This service presents users with more detailed answers to their queries while still providing links to additional information and advertising. However, Google has been slow to incorporate these “Search Generative Experience” features into its main search engine.
The reason for this cautious approach is that these AI-powered search results are more costly for Google to provide than their traditional responses. Generative AI requires significantly more computing resources, making it a more expensive proposition for the tech giant.
Microsoft, a major partner of OpenAI, introduced upgraded GPT-based search and a virtual assistant, now known as Copilot, within its Bing search platform over a year ago. However, these advanced AI capabilities have yet to significantly increase Bing’s market dominance, which still trails far behind the industry leader, Google.
Industry experts have cautioned that Google’s advertising revenue could decline if its search engine offers more comprehensive AI-generated responses, reducing the need for users to click through to its advertisers’ websites. Similarly, numerous online publishers reliant on Google for website traffic are concerned that fewer users will visit their pages if Google’s AI-powered search extracts and directly presents information from their web content.
This year, Google has introduced a new premium Google One subscription tier, enabling users to access its sophisticated Gemini chatbot. Additionally, the company has incorporated Gemini into its Workspace suite, which includes popular productivity tools like Gmail and Docs.
