The news: Google is reportedly building a new AI-powered search engine under the working name “Magi,” according to a report from The New York Times.
Google’s AI rush: Magi is part of a broad initiative at Google to rapidly launch AI-powered products and add AI features to existing services in order to protect its market share against competitors who were earlier out of the gate with their own offerings.
What would it look like? Magi is still in the early stages, but the Times report suggests that Google is attempting to build a search engine that preempts what consumers need, in addition to several other AI products and features for Chrome.
Adapting the ad business: Google offering a new search engine is an earth-shaking big deal. Google is the premier access point to the internet for many, and a staggering $141 billion of its projected global revenues of $170 billion will come from search.
Our take: Google is trying to find a delicate balance between staying ahead of competitors that are advancing new technologies and calming advertisers who are used to the established ways of doing business. The advertising-first approach suggested in the documents shows Google trying to find a rocky middle ground, but may appease advertisers that a smoother marriage between AI search and advertising is on the way.
First Published on Apr 18, 2023
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