Google is reportedly working on enhancing its search engine with the launch of what is being called an ‘AI mode’. The AI mode will integrate Google’s Gemini AI chatbot into its Google Search, effectively giving in to how OpenAI’s ChatGPT and Perplexity AI are playing the game. Given Google’s high stature and standing in the world of AI, one would think this is game over for the Google rivals. Let’s dig deeper to find out if that’s the case.
The AI Mode will be placed on the left side of the existing tabs like All, Images, Videos, etc. This would help users conveniently switch between traditional Google results and AI Mode results. Once in the AI mode, users will get their queries answered by the Gemini AI bot. But alongside the chatbot’s response, Google will produce links to related websites, so users can directly read the source as well.
This sounds like a clever move. By printing the sources alongside the AI response, Google won’t be criticized for ‘stealing’ the content. All it is doing is enhancing the user experience through AI. It would be plausible to think that the traditional Google search will be phased out with time. SEO optimization could soon change to AI optimization which may render the old search engine useless anyways.
Another way the AI mode is different from the traditional search is that you can ask follow-up questions. Perplexity AI offered this feature a long time ago. ChatGPT launched SearchGPT just over a couple of months ago. Google, having the luxury of being the giant that it is, didn’t need to be the first. It has taken its time, seen what the competitors are capable of, and is about to launch a polished version that should beat the competitors. We’d be surprised if it didn’t.
The conversational nature of the AI Mode will help users modify their search queries quickly and get to the desired result. This could mean the number of searches goes down, but the quality of searches will go up. With more relevant results, Google will be able to monetize the AI Mode much better. META has already seen great results after launching AI-backed advertising features. Google should be able to taste similar success. This will also please Wall Street, which has been critical of all the AI spending of late.
Alphabet is 4th on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 202 hedge fund portfolios held GOOG at the end of the third quarter which was 216 in the previous quarter. While we acknowledge the potential of GOOG as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as GOOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.