Google considers charging customers to use new AI powered search tools: report

By Louis Goss

Google is considering putting some new artificial intelligence powered features behind a paywall in a major shift that would see the tech giant charge people who use search engine for the first time in its 25-year history, according to the Financial Times.

The Silicon Valley giant's plans could see it launch a new set of AI-driven search features that would only be available to those who pay a subscription - while continuing to let people use its core search engine in its traditional form for free, the report said.

In a statement sent to the Financial Times, Google said it is continuing "to build new premium capabilities and services to enhance our subscription offerings across Google" but added that it is "not working on or considering" launching an advertising-free search engine.

Google was approached by MarketWatch for comment.

The plans would give Google a means of embracing the new AI technologies that threaten the $175 billion annual ad-fueled revenue it generates from its search engine business by diverting traffic away from Google towards AI driven rivals such as ChatGPT.

The tech firm already charges users for access to certain features on its Google Drive, Gmail, and Google Photos products, including for extra storage for access to the most advanced form of its Gemini chatbot as part of its Google One subscription service.

Shares in Google owner Alphabet (GOOG) (GOOGL) were down by less than 1% in out-of-hours trading having increased by 43% over the previous 12 months.

AI powered chatbots potentially pose a significant threat to Google's ad funded search engine business as they give users more complete answers that mean they have less of a need to click through to the websites that pay to advertise.

In May last year, Google started testing an AI-powered service that gives users more detailed answers to questions while also providing links to websites alongside ads, as it scrambled to respond to the launch of ChatGPT.

-Louis Goss

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04-04-24 0425ET

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