Google is beginning to weave advertisements into its new AI Mode for online search, a strategic move to counter the challenge posed by ChatGPT as the primary source for online answers.
The integration of advertising has been a key question surrounding the immense popularity of generative artificial intelligence chatbots, which have largely avoided interrupting the user experience with ads.
However, advertising remains Google’s financial bedrock, accounting for over two-thirds of its revenue. The rising popularity of chatbots has sparked concern on Wall Street regarding Google’s future earnings.
Google’s AI Mode, one of a multitude of new user features unveiled on Tuesday at its annual I/O conference in California, is perceived as the company’s direct response to the escalating threat of ChatGPT siphoning off search queries and undermining Google’s established business model.
The new mode will facilitate a more conversational interaction with Google during search queries, providing answers in diverse formats, such as video, audio or graphs.
The internet giant said it is testing ad integration within AI Mode responses, building on insights gained from AI-generative summaries – known as Overviews – introduced to search results a year ago.
These Overviews already display comprehensive AI-generated responses above traditional website ads and links.
The new mode will facilitate a more conversational interaction with Google during search queries. Picture: Pau Barrena/AFP
The new mode will facilitate a more conversational interaction with Google during search queries. Picture:
The future of advertising fuelled by AI isn’t coming – it’s already here,” Google’s Vice President of Ads & Commerce, Vidhya Srinivasan, said.
“We’re reimagining the future of ads and shopping: Ads that don’t interrupt, but help customers discover a product or service.”
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