July 23, 2024 | 11:37

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Google ready to fill its searches with artificial intelligence and ads

Miguel Castillo

October 29, 2023 | 7:32 p.m.

Artificial intelligence (AI) transforms the search experience, and Google, the undisputed leader of the search engine world, is not far behind. However, beyond technological evolution, there is a crucial aspect that could influence the company's future: advertising.

The progress of the AI-powered Generative Search Experience

The Google Generative Search Experience, or SGE for its acronym in English, is changing the way we understand search. Although it is still in an optional phase, This AI-generated experience is expected to become the standard. Google CEO Sundar Pichai sees it as an opportunity to “evolve search and Assistant over the next decade.” In Pichai's own words, over time, SGE will be "just how search works."

What does this mean for advertisers and Google's business model? It's a valid question, especially when Advertising represents the core of Google's revenue.

New formats and opportunities for advertisers

While many might think that the introduction of AI in search could make it difficult to insert advertising, Google is already looking for solutions. During the last earnings call, it was revealed that the company would be experimenting with new formats adapted to the way SGE works. In fact, they have already come up with some innovative ideas.

Philip Schindler, business director of Google, stressed the importance that, in this new experience, advertisers continue to have the opportunity to reach potential customers in their search paths. It's a powerful statement that ensures that, despite advances in AI, Google is not forgetting its core business model.

Google's sustained growth and the expansion of AI

Beyond search, other segments of Google's business are also thriving. YouTube, for example, has reported advertising revenue of $ 7.9 billion, del% increase 12 Over the previous year. Additionally, they have introduced AI tools to the service, such as the “Dream Screen” feature, which allows creators to incorporate AI-generated photos and videos into their Shorts.

On the other hand, the business of google cloud, which offers AI services that customers can purchase for their own applications and products, generated $ 8.4 billion, increase of 22% compared to the same quarter of the previous year.

Changes on the horizon and future challenges

Despite the advances and growth, not everything is rosy for Google. A significant change is the promotion of Ruth Porat to president and chief investment officer of Alphabet and Google. A successor to her former CFO position has not yet been announced. Porat has hinted at possible changes to Alphabet's "Other Bets" investments, which could mean reductions in the future.

In addition, the shadow of the antitrust trial of the Department of Justice against Google, which began in September, could have significant implications for the company.

Conclusion

Google's commitment to AI in its searches represents an evolutionary leap in how we understand and interact with the digital world. Despite the challenges and uncertainty it may face, the technology giant continues to demonstrate that it is ready to adapt, innovate and lead in the era of artificial intelligence.

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