Google starts testing generative AI in search, ads included

The race to transform search using generative AI is kicking into high gear. While Google’s implementation of the technology is not surprising — and has basically been a given since February — more formal tests demonstrate that the tech giant is moving quickly to address the competitive threat posed by rivals that were early to jump on the trend. Google’s announcement comes a week after Microsoft shifted AI-powered Bing from limited to open preview, welcoming more consumers into the fold.

Google’s early experiments with generative AI in search, dubbed the Search Generative Experience (SGE), are part of a new Search Labs program. Those interested in trying out the features and providing feedback can join a waitlist, with access opening in the coming weeks. The initial run will be in the U.S. and in English only.

SGE is just one of several bits of AI-related news that dropped at this year’s I/O but carries some of the biggest implications for Google’s core business. Search is the company’s largest ad revenue segment and has made it into a dominant force in digital marketing over the past two decades-plus. It is also an area that has seen growth cool with stiffer competition and weak advertiser demand in a down economy. Google search revenue grew just 2% in the first quarter of 2023, while the firm’s overall revenue from ads was down year-over-year for the second consecutive quarter. Overall revenues for search advertising were up 7.8% in 2022, according to the IAB.