Google Search Chief Prabhakar Raghavan recently warned staff at an all-hands meeting that the company must prepare for a new chapter as the search landscape has changed and will not be “hunky-dory” forever, according to CNBC. While revenue from search and other business totaled $48 billion in the final three months of last year, Raghavan acknowledged the rise of competitors like startup Perplexity AI, which recently raised $63 million in a new funding round and is valued at over $1 billion. Among Perplexity’s backers are Jeff Bezos and Nvidia.
Raghavan emphasized that despite new competitors, Google remains a trusted source for information. However, the introduction of generative AI has forced Google to adapt its search experience. The company announced a new version called Search Generative Experience (SGE), which is powered by AI. SGE provides AI-generated summaries of search results for some users, allowing them to quickly find relevant information without having to sift through endless pages. Microsoft has also enhanced its search capabilities with new AI features on Bing, allowing users to search visually.
As Google and Microsoft compete to advance their search technologies, AI is playing a crucial role in shaping the future of search. Google is working on improving its search experience with AI-powered features, while Microsoft is reinventing Bing with AI-infused capabilities. Both companies are investing heavily in AI to stay ahead in the competitive search engine market.