Google Warns Staff of Changing Landscape in Search, As AI Plays Key Role in Shaping Future of Search Engines

In a recent all-hands meeting, Google search chief Prabhakar Raghavan warned staff that the future of search has changed and that they must prepare for a new chapter, according to CNBC. Raghavan emphasized that things are not like they were 15 or 20 years ago and that life will not always be “hunky-dory.”

Google’s revenue from “search and other” totaled $48 billion in the final three months of last year, making it a crucial part of Alphabet’s business. However, Raghavan acknowledged the rise of competitors such as startup Perplexity AI, which recently raised about $63 million in a new funding round and is valued at more than $1 billion. Among Perplexity’s backers are Jeff Bezos and Nvidia.

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. Google has started testing “AI overviews” for some users, providing AI-generated summaries of search results. 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.