According to the Financial Times, citing three anonymous sources, Google is exploring various options, such as integrating AI-powered search features into its Google One subscription, priced at $20 per month, which already includes access to the Gemini chatbot among other app suite offerings. (Source: Image by RR)

Google Explores Subscription Model for AI-Enhanced Search Features

Google is reportedly contemplating the introduction of a paywall for premium features within its AI-powered Search Generative Experience (SGE), a move that would represent a significant shift in the company’s traditionally free access model. This consideration, highlighted in a Financial Times report citing anonymous sources, suggests Google might include some AI-powered search functionalities in its Google One subscription, priced at $20 per month. This decision is still under debate among executives, with ongoing development efforts to support potential implementation while ensuring the standard search engine remains freely accessible.

The possibility of paywalling part of Google’s search services comes as the tech giant holds a dominant 90% share of the global search market, a position it has maintained despite the rising use of AI tools. According to an article in thestreet.com, Google’s search advertising business, a critical revenue stream, generated $175 billion in 2023, accounting for half of the company’s overall revenue. The introduction of SGE poses both opportunities and challenges, with potential impacts on traffic for digital publishers and Google’s revenue.

Analysts and publishers have expressed concerns over the SGE’s impact, with projections suggesting digital publishers could see traffic declines between 20% and 60%. Despite these concerns, some, like Wedbush’s Dan Ives, remain optimistic about the long-term monetization prospects of SGE, potentially equalling or surpassing traditional search revenues. Google’s foray into generative AI search reflects its ongoing commitment to evolving its search capabilities to meet user needs more naturally, having already processed billions of queries through its AI experiments.

As the tech community and investors watch closely, Google maintains that it has no immediate announcements regarding the deployment of these premium AI search features. This development underscores Google’s strategy to navigate the evolving digital landscape while balancing innovation with its established revenue models. The news has prompted slight fluctuations in Google’s stock price, indicating the market’s keen interest in the company’s future direction in AI and search technologies.

read more at thestreet.com