Google Investigates AI-Powered Search for Ads

The core business of Google is doing well despite increasing levels of competition and significant investments in the incorporation of AI-powered across a wide range of products. In spite of obstacles, Google’s advertising business is thriving even more than before.

Google Wants Formats Tailored to SGE’s Workings

The crucial question, however, is how Google’s concentrated efforts in artificial intelligence will influence this foundational business. During the earnings call for Google, the company’s CEO, Sundar Pichai, mentioned the company’s intention to experiment with new formats that are tailored to the way that Search Generative Experience (SGE) operates.

Google has already provided some conceptual ideas, suggesting possible debuts in the not-too-distant future. Philipp Schindler, chief business officer at Google, emphasized how important it is to give advertisers the opportunity to engage with potential customers while they are on their search journeys in this new experience.

The AI-powered Search Guidance Element (SGE) that Google offers is still an opt-in feature, and it is not yet clear how much of an impact it will have on the advertising sector of the company. As the SGE is gradually rolled out, Google is concentrating its efforts on ensuring a seamless product launch, developing value for its ecosystem, and facilitating a transition that is not noticeable to advertisers.

Pichai sees the incorporation of AI into search as a project with a long time horizon, and he believes that there will be an opportunity to reshape both search and Assistant over the next ten years. According to a report by The Verge, this seems to indicate that Google has started seriously considering the possibility of turning its AI-powered search into more of a business.

Pichai affirmed that they are diligently ensuring that the product performs optimally and delivers value to the ecosystem while maintaining a smooth transition for ads while he was giving the presentation on SGE.

Google Envisioning Transformation for Search, Assistant: AI-powered

Long-term planning is required for Google’s ambitious plan to strategically integrate AI into its search functionality. Pichai had a vision for search and Assistant that involved radical change over the next ten years.

His previous statement indicated that SGE was well on its way to becoming the industry standard for how search is conducted. In addition, the company is showing a growing commitment to making AI-powered search a core part of its business, as was evident from the discussions about ads that took place during the most recent earnings call.

In addition to these developments, the results demonstrated that other aspects of Google’s business are achieving a high level of success. For example, revenue from advertisements on YouTube reached $7.9 billion in 2018, marking an increase of more than 12 percent when compared to the previous year.

Google is also working to improve its widely used video service by equipping it with a variety of AI-based tools. One example of this is the introduction of features such as “Dream Screen,” which enables creators to include AI-generated images and videos within Shorts.

In addition, Google’s cloud business is thriving, as evidenced by the company’s $8.4 billion in revenue, which represents a 22 percent growth compared to the previous quarter’s total. Customers who are looking for AI solutions for their applications and products can take advantage of the AI services provided by this division.

On Tuesday, during the presentation of Alphabet’s financial results for the third quarter, Google did not provide an answer to a very important question: who will succeed Ruth Porat as CFO?

During the announcement of Alphabet’s financial results for the second quarter, the company disclosed that Porat would be taking on the roles of president and chief investment officer of both Alphabet and Google. These responsibilities include watching over the investments that are classified as “Other Bets” by Alphabet.

There was no one named to take over at that time, and the information has not been made public since then. On the other hand, Porat hinted during Tuesday’s call that “Other Bets” might undergo some revisions in the not-too-distant future.

She mentioned that across the portfolio of “Other Bets” companies, they have been working to identify opportunities to create sharper focus and to operate more efficiently and effectively. She also mentioned that they have been looking for these opportunities. This statement provided a strong indication that there will most likely be upcoming changes made to Alphabet’s “Other Bets” investments.