Google CEO Suggests Subscription Business Models for AI Products

Google CEO Suggests Subscription Business Models for AI Products

During the Q3 earnings call, Google CEO Sundar Pichai hinted that the company could adopt subscription business models for its new AI products. This move comes as Google seeks to explore alternative revenue streams beyond its traditional advertising model. Pichai mentioned the success of YouTube’s subscription offerings, such as YouTube TV and NFL Sunday Ticket, which have shown strong growth in revenue. While subscription models for AI products present new opportunities, Pichai acknowledged the need to tread carefully, considering the potential impact on Google’s lucrative Search ads.

When asked about the performance of Google’s Search Generative Experience (SGE) and Google Bard chatbot, Pichai expressed satisfaction with user feedback and mentioned plans to further roll out SGE to more users. He emphasized the potential for AI to reshape the Search and Google Assistant service over the coming decade. Pichai’s openness to subscription models highlights Google’s willingness to innovate and explore different paths for its AI products.

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Source: Google considers subscription business models for its new AI offerings

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