Google has been working on improving its search experience with a generative AI-powered version called Search Generative Experience (SGE). Meanwhile, Microsoft has also been enhancing its search capabilities, introducing new AI features on Bing last year. Microsoft CEO Satya Nadella stated that AI will fundamentally change every software category, starting with search.
Key takeaways:
- Google search chief Prabhakar Raghavan has reportedly warned staff about changes in the industry, stating that "things have changed" and they're "not like they were 15, 20 years ago."
- Search remains a crucial part of Alphabet's business, accounting for revenues of $48 billion in the final three months of last year, which is more than $5 billion higher than the same period in 2022.
- Rivals such as startup Perplexity AI are developing their own search engines to challenge Google's dominance. Perplexity AI recently raised about $63 million in a new funding round, valuing the company at more than $1 billion.
- Google is improving users' search experience with a generative AI-powered version called Search Generative Experience (SGE), while Microsoft is also stepping up its search ambitions with new AI features on Bing.