Apple’s next update could include Anthropic

Google is rethinking its strategy as it considers implementing artificial intelligence-driven “premium” features in its search engine, which will represent a significant shift in its business model. This move could result in key products being placed behind a paywall, a radical change for a company historically rooted in free, ad-funded services.

Google’s proposal includes adding AI-enhanced search capabilities to its portfolio of premium subscription services, such as access to the Gemini AI assistant in Gmail and Docs. While the traditional search engine looks like it would remain free, the inclusion of advanced features would be a major turnaround for the company facing significant challenges since the launch of ChatGPT by OpenAI in 2022.

Impact on digital marketing

The biggest challenge for Google would be how to integrate these AI innovations without compromising its main source of revenue: the $175 billion generated last year through search and related ads. This situation affects not only Google, but the entire digital marketing ecosystem. With more comprehensive searches provided by AI, it could decrease the need for clicks to advertiser websites, rethinking the business model of online advertising.

This shift could also influence how brands adapt to a transformed digital ecosystem where direct interactions with websites decrease. However, it offers an opportunity to more clearly identify high-profit consumers, known as“heavy e-buyers,” who are willing to increase their subscriptions to digital services.

The generative search experience

Although Google has not yet made a final decision on these premium features, the integration of generative technologies into its main search engine seems imminent. The company has already launched an experiment in the U.S., allowing users to access an“AI-powered snapshot,” a snapshot view with an AI-generated summary with links to source material on the results page.

This approach retains the traditional blue link format but introduces an AI component that could fundamentally change how we interact with online searches. While this change offers much promise, it also comes with risks, especially in terms of accuracy and the quality of the information provided.

Such developments force the marketing industry to be very attentive and prepared to adapt to new market dynamics. As leaders in innovation and digital strategy, at MIO One, we explore these new technologies and stay ahead of the curve to maximize our clients’ return on investment and optimize results in this changing digital landscape.

April 2, 2024

You may also be interested in