Alphabet Inc.’s (NASDAQ:GOOGL) Google is exploring the possibility of introducing paid features for its AI-powered search engine, according to a recent Financial Times report. The company is evaluating various options to integrate AI-powered search capabilities into its premium subscription services, which currently include access to Google’s new Gemini AI assistant in Gmail and Docs.
The introduction of premium features would represent a first for Google, as it will put some of its core services behind a paywall. However, the traditional search engine will remain free, and ads will still be displayed alongside search results for both free and registered users.
Alphabet shares fell slightly, down about 1% in after-hours trading following the news.
In an emailed statement to Reuters, Google clarified its stance on the matter: “We are not working on or considering an ad-free search experience. As we have done many times before, we will continue to build new capabilities and premium services to enhance our subscription offerings on Google.”
The decision to explore paid features comes at a time when Google is locked in a competitive battle in the AI space, facing significant challenges from companies like ChatGPT creator OpenAI and Microsoft, which has invested in OpenAI. These industry players have recently garnered significant attention for their advances in artificial intelligence technology.
Source: Investing