Google’s innovator’s dilemma is really an innovator’s opportunity


Google experiments with chatbots and AI-generated search results. Google search will “evolve,” says Google CEO Sundar Pichai. What will become of the WWW?

CBSNews’ Scott Pelley confronts Pichai with the seemingly central question: Why should a user still click through Google search results when a chatbot can provide the answer directly?

Pichai responds somewhat evasively, saying that Google Search will continue to evolve, becoming “more helpful” and offering new features such as generating a summary in response to a query. Google is already offering an early version of this new search to test users with its generative AI search called “SGE”.

Google is the hub of the current Web and holds all the keys to its future

Pelley raises the question of Google’s economic future and whether the company is about to slaughter its own cash cow. By now it should be clear that this is the wrong question.


The right question is: How big will its new business be?

In fact, Google is more likely to benefit from AI in search. For example, the new SGE will keep users in the Google ecosystem longer – creating more space for advertising.

Chatbots could weave personalized ads into text, which is particularly effective and therefore perhaps particularly expensive. If an AI-powered Google Assistant becomes the new all-purpose assistant and ubiquitous in everyday life, Google will enter new dimensions of market penetration.

Of course, Google has new competition in the form of OpenAI and Microsoft with its Bing chatbot. But so far, this alleged competition has not affected Google’s business. Microsoft has not achieved significant growth with Bing (or talked about it) despite aggressive and sometimes tasteless marketing.

And the current version of Google’s AI search is miles ahead of Microsoft’s and OpenAI’s offerings in terms of usability, multimodality, and linking search results with chat capabilities.


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