Generative AI

Google Reportedly Flirting With Paywalled AI Search 


Google is reportedly considering charging people to use its premium generative artificial intelligence (AI) features.

That’s according to a Wednesday (April 3) report by the Financial Times (FT), which notes that this would mark the first time Google has placed its core products behind a paywall, and suggests the company continues to wrestle with a technology threatening its ad revenue.

Sources tell the FT that Google is weighing options including the addition of some AI-powered search features to its premium subscription services. The company recently rolled out subscription plans to its Gemini AI assistant in Gmail and Google Docs.

Google’s engineers are at work on the technology to launch the service, though executives have not yet determined whether the company will actually release it, one of the sources said. The report say Google’s traditional search engine would still be free, and ads would continue to appear in search results for subscribers and non-subscribers alike.

PYMNTS has contacted Google for comment but has not yet received a reply. A report by Reuters Wednesday — also citing the FT — includes a statement from the company that says Google is “not working on or considering an ad-free search experience,” without denying the claims about a subscription for the AI-powered search.

Meanwhile, PYMNTS earlier this week examined the hype around AI, which many experts say has reached a fever pitch.

Interest among consumers in the technology continues to grow, with research from PYMNTS Intelligence showing that the average consumer uses around five AI technologies each week, including web browsing, navigation apps, and online recommendations. 

The research also found that close to two-thirds of Americans are interested in AI assistants for things like booking trips, with AI enhancing the personalization of in-car experiences.

However, PYMNTS wrote, one of the key issues with AI hype is that it gives the public — and investors — unrealistic expectations. And when companies can’t follow through with bold claims about the technology, it creates disappointment and erodes trust.

“Most people in the AI space have good intentions and don’t want to mislead consumers or users,” Zohar Bronfman, co-founder and CEO of Pecan AI, told PYMNTS. 

“I don’t doubt that they’re working hard to deliver the best AI products they can. What’s been ignored, though, is that generative AI so far just hasn’t provided significant business value. It’s fascinating and powerful, but so far, most business users have come up empty-handed when they try to use it to really drive business impact.”

 



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