Google Considers Charging For Premium Features On AI-powered Search Engine

Alphabet's Google is contemplating a shift in its business strategy, as reported by the Financial Times. According to FT sources, the tech giant is evaluating the possibility of introducing premium features on its generative AI-powered search engine. 

This move would mark Google's first venture into putting any of its core products behind a paywall. The Financial Times reported on Wednesday that Google is exploring various options, including integrating AI-powered search features into its existing premium subscription services. These services currently offer access to the Gemini AI assistant in Gmail and Docs. Alphabet's shares experienced a slight dip of about 1 per cent in extended trade following the news.

While Google aims to capitalise on the fast-moving AI space, it reassured users that its traditional search engine would remain free of charge. Further, advertisements would continue to appear alongside search results even for subscribers, ensuring the widespread accessibility of its services, as per the Financial Times report.

In a statement provided to Reuters, Google stated, "We're not working on or considering an ad-free search experience. As we've done many times before, we'll continue to build new premium capabilities and services to enhance our subscription offerings across Google."

Google's potential move comes amidst intensifying competition in the AI industry. The company finds itself locked in a battle with key players like OpenAI, the creator of ChatGPT and its backer Microsoft. These industry giants have captured the attention of the business world with their innovative AI technologies and solutions.