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Google to introduce AI Mode in search engine, rivaling chatbots
By: Investing | December 19, 2024

Google (NASDAQ:GOOGL) is planning to introduce an AI Mode to its search engine, a move that could rival existing AI chatbots, according to a report from The Information, citing sources. The new feature will resemble Google's own Gemini AI chatbot, which currently operates separately from the search engine. This development is expected to significantly increase Gemini's user base.

The introduction of AI Mode demonstrates Google's efforts to adapt its primary revenue source in the face of transformative chatbot services like ChatGPT and Perplexity. These services are changing how people find information, from shopping and travel suggestions to writing tips and recipe searches. Android Authority has previously reported on the planned addition of AI Mode to Google's search engine.

Software (ETR:SOWGn) code already integrated into Google's search app implies that AI Mode could enable users to interact with Google Search on their Android devices, similar to how they can communicate with Google Gemini or ChatGPT. Android Authority found similar code in Google’s Android app.

A spokesperson from Google stated that as their advanced models continue to improve, there is a significant opportunity to incorporate these new capabilities into Search, helping people discover even more of the web.

However, the introduction of AI Mode is not without risks. Google is currently anticipating penalties from a federal judge after being ruled as an illegal monopoly. The Department of Justice has indicated it may want to restrict Google's ability to leverage its search engine to outperform AI chatbot competitors, potentially hindering the implementation of new features like AI Mode.

Google could argue that its search engine has always been AI-powered, suggesting that the new changes are not substantial.

Users will be able to switch to AI Mode by clicking a tab located at the top of a results page. The new tab will be positioned to the left of other longstanding tabs such as All, Images, Videos, and Shopping.

Since the launch of ChatGPT in late 2022, Google has felt the pressure to innovate their products or launch new ones to counter the threat posed by AI chatbots. In response, Google launched Bard in March 2023, which was later renamed to Gemini and launched separately from search. In February, Google started promoting the Gemini chatbot in its Google mobile app. In May, it launched AI Overviews, a feature that initially faced backlash for producing inaccurate results that quickly spread on social media, leading Google to scale back the feature.

While ChatGPT hasn't seemingly affected Google Search's ad revenue, Google executives are preparing for such a possibility, particularly as OpenAI continues to promote its web-search capabilities. ChatGPT claims it has over 300 million weekly users. Google has not disclosed the number of Gemini chatbot users, but data from firms tracking chatbot usage show that ChatGPT is significantly ahead of its competitors. For example, Similarweb (NYSE:SMWB) reported that ChatGPT had nearly 14 times more visitors than Gemini in November.

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