Google is contemplating the idea of introducing fees for cutting-edge "premium" features powered by artificial intelligence (AI), a move that would be unprecedented as Google has always made its core services available for free. Sources familiar with the matter, who spoke anonymously to the Financial Times, revealed some of Google's discussions. They mentioned that Google is exploring various options, including incorporating AI-driven search functionalities into premium subscription bundles.
Although the engineers are currently working on this initiative, Google's executives have not yet provided clear details about how the plan will unfold.
Interestingly, even if Google decides to introduce these premium features, the basic search engine will remain free for all users, including subscribers, and will continue to display ads.
A spokesperson from Google told the Financial Times, "We're constantly enhancing our product to cater to evolving user needs. However, an ad-free search experience is not on our radar. Like we've done countless times in the past, we'll continue innovating new premium features and services to enrich our suite of subscription offerings.”
This step could suggest that Alphabet is still grappling with how to leverage the rapidly advancing new technologies without jeopardising its fundamental advertising business.
Following the announcement, Google's stock experienced a slight decline of less than 1 per cent in after-hours trading.
Google VS OpenAI
Since the introduction of ChatGPT by OpenAI in late 2022, Google has found itself defending against this popular chatbot. Due to ChatGPT's ability to provide conversational search responses, Google has had to reconsider its traditional format of displaying blue links to websites along with lucrative ads adjacent to them.
Simultaneously, a new wave of search engines has emerged in recent times. Some search engines have attempted to attract users to premium memberships by offering improved privacy protections or access to generative AI search tools.
Last year, Google began working on its own AI-driven search engine. This new engine includes website links, advertisements, and a personalised, detailed narrative. However, the process of integrating features from its experimental "search generative experience" into the primary search engine has been gradual.