Google Considers Charging for Premium Search Engine

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Facts

  • The Financial Times (FT) has reported that Google is considering charging users for access to 'premium' artificial intelligence (AI) features of the technology company's search engine.1
  • The report claims that Google's standard search engine will remain free, while both the company's traditional and premium services will be accompanied by advertisements. In a press statement, Google claimed that it was 'not working on or considering an ad-free search experience.'2
  • As of May 2023, a Google AI search engine 'experiment' — titled Search Generative Experience (SGE), and described as the 'first steps' in a 'new era' — has been open to signups in the US.3
  • The BBC on Thursday reported that the SGE trial service has now been expanded to the UK. Google has described the trials as 'incredibly helpful, particularly for more complex queries,' and that SGE had already performed 'billions' of search responses.4
  • The company already offers an 'AI Premium' feature to its Google One service, containing the use of its AI model Gemini in Gmail and Google Docs, as well as Gemini Advanced — containing its 'most capable AI model,' Ultra 1.0.5
  • The FT claims that, while a potential change is being developed, a decision has not yet been reached by Google's executives. In 2023, Google reported $175B in revenue from both its search engine and related advertisements.1

Sources: 1ft.com, 2BBC News, 3Google (a), 4Time and 5Google (b).

Narratives

  • Narrative A, as provided by FastCompany.com. If Google goes through with a plan to charge a subscription fee for using AI search, it'll risk alienating its users. If people don't think AI search is that much of an improvement on regular search, they won't want to pay. Google would be better off finding new ways to monetize AI search, whether it's through different forms of ads or a referral fee from brands.
  • Narrative B, as provided by Ars Technica. Google is wise to consider every revenue stream possible when it comes to its AI search, which will come with increased costs to the company. Although it has yet to see its market share decrease during the uptick in the AI bonanza, Google knows it can't be complacent and just rely on its name and/or the current revenue model to keep it on top.

Predictions