Prabhakar Raghavan, the search chief at Google, has warned his staff that they need to prepare for a new chapter in the company’s history. He said that things are not like they were 15 or 20 years ago and that life will not always be “hunky-dory.” This comes as search remains a crucial part of Alphabet’s business, with revenue from “search and other” totaling $48 billion in the final three months of last year.
Raghavan also acknowledged the rise of competitors such as 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. However, Raghavan emphasized that Google is still considered a trusted source for information.
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. Both companies are investing heavily in AI to stay ahead in the competitive search engine market.
In conclusion, Prabhakar Raghavan’s warning to his staff signifies that things have changed in the world of search engines. With competitors like Perplexity AI gaining ground, both Google and Microsoft are working hard to improve their technologies using artificial intelligence (AI). As such, it is clear that AI will continue to play an important role in shaping the future of search.
