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Japan Today
20-05-2025
- Business
- Japan Today
Google's unleashes ‘A.I. Mode' in the next phase of its journey to change search
People pose for photos in front of an I/O logo at a Google I/O event in Mountain View, Calif., Tuesday, May 20, 2025. (AP Photo/Jeff Chiu) By MICHAEL LIEDTKE Google on Tuesday unleashed another wave of artificial intelligence technology to accelerate a year-long makeover of its search engine that is changing the way people get information and curtailing the flow of internet traffic to websites. The next phase outlined at Google's annual developers conference includes releasing a new 'AI mode' option in the United States. The feature makes interacting with Google's search engine more like having a conversation with an expert capable of answering questions on just about any topic imaginable. AI mode is being offered to all comers in the U.S. just two-and-half-months after the company began testing with a limited Labs division audience. Google is also feeding its latest AI model Gemini 2.5, into its search algorithms and will soon begin testing other AI features, such as the ability to automatically buy tickets to concerts and conduct searches through live video feeds. The expansion builds upon a transformation that began a year ago with the introduction of conversational summaries called 'AI overviews' that have been increasingly appearing at the top of its results page and eclipsing its traditional rankings of web links. About 1.5 billion people now regularly engage with 'AI overviews,' according to Google, and most users are now entering longer and more complex queries. 'What all this progress means is that we are in a new phase of the AI platform shift, where decades of research are now becoming reality for people all over the world," Google CEO Sundar Pichai said before a packed crowd in an amphitheater near the company's Mountain View, California, headquarters. Although Pichai and other Google executives predicted AI overviews would trigger more searches and ultimately more clicks to other sites, it hasn't worked out that way so far, according to the findings of search optimization firm BrightEdge. Clickthrough rates from Google's search results have declined by nearly 30% during the past year, according to BrightEdge's recently released study, which attributed the decrease to people becoming increasingly satisfied with AI overviews. The decision to make AI mode broadly available after a relatively short test period reflects Google's confidence that the technology won't habitually spew misinformation that tarnishes its brand's reputation, and acknowledges the growing competition from other AI-powered search options from the likes of ChatGPT and Perplexity. The rapid rise of AI alternatives emerged as a recurring theme in legal proceedings that could force Google to dismantle parts of its internet empire after a federal judge last year declared its search engine to be an illegal monopoly. In testimony during a trial earlier this month, longtime Apple executive Eddy Cue said Google searches done through the iPhone maker's Safari browser have been declining because more people are leaning on AI-powered alternatives. And Google has cited the upheaval being caused by AI's rise as one of the main reasons that it should only be required to make relatively minor changes to the way it operates its search engine because technology already is changing the competitive landscape. But Google's reliance on more AI so far appears to be enabling its search engine to maintain its mantle as the internet's main gateway — a position that's main reason its corporate parent, Alphabet Inc., boasts a market value of $2 trillion. During the year ending in March, Google received 136 billion monthly visits, 34 times more than ChatGPT average of 4 billion monthly visits, according to data compiled by Even Google's own AI mode acknowledged that the company's search engine seems unlikely to be significantly hurt by the shift to AI technology when a reporter from The Associated Press asked whether its introduction would make the company even more powerful. 'Yes, it is highly likely that Google's AI mode will make Google more powerful, particularly in the realm of information access and online influence,' the AI mode responded. The feature also warns web publishers should be concerned about AI mode reducing the traffic that they get from search results. Google's upcoming tests in its Labs division foreshadow the next wave of AI technology likely to be made available to the masses. Besides using its Project Mariner technology to test the ability of an AI agent to buy tickets and book restaurant reservations, Google will also experiment with searches done through live video and an opt-in option to give its AI technology access to people's Gmail so it can learn more about a user's tastes and interests. Other features on this summer's test list include a 'Deep Search' option that will use AI to dig even deeper into complex topics and another tool that will produce graphical presentations of sports and finance data. Google is also introducing its equivalent of VIP access to all its AI technology with an 'Ultra' subscription package that will cost $250 per month and include 30 terabytes of storage, too. That's a big step beyond Google's previous top-of-the-line AI 'pro' package that cost $20 per month and included two terabytes of storage. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Japan Today
06-05-2025
- Business
- Japan Today
U.S. expands attempt to break up Google with proposed teardown of its ad technology
By MICHAEL LIEDTKE The U.S. Justice Department is doubling down on its attempt to break up Google by asking a federal judge to force the company to part with some of the technology powering the company's digital ad network. The proposed dismantling coincides with an ongoing federal effort to separate Google's Chrome browser from its dominant search engine. The government's latest proposal was filed late Monday in a Virginia federal court two-and-half weeks after a federal judge ruled that its lucrative digital ad network has been improperly abusing its market power to stifle competition to the detriment of online publishers. In a 17-page filing, Justice Department lawyers argued that U.S. District Judge Leonie Brinkema should punish Google by ordering the company to offload its AdX business and DFP ad platform, tools that bring together advertisers, who want to market their products, and publishers, who want to sell commercial space on their sites, to bring in revenue. The government also is seeking other restrictions, including a 10-year ban on Google from operating a digital ad exchange, to undercut the power of a 'recidivist monopolist.' Not surprisingly, it's an idea that Google vehemently plans to oppose when the penalty phase of the antitrust case —known as remedy hearings — begins in late September. Google already has vowed to appeal Brinkema's ruling that the technology powering the ad network has been breaking the law, but can't do that until the judge rules on its punishment in a decision expected late this year or early next year. The Justice Department's proposal 'would cause economic chaos and technological dysfunction resulting in harm to millions of advertisers and publishers, and in so doing, degrade the experience of internet users,' Google said in a court filing late Monday. In its counterproposal, Google outlined a plan that it believes will bring more transparency to its ad network and eventually foster more competition. Google proposed the appointment of a trustee to oversee its behavior for three years. The attempt to tear down Google's ad network comes on top of the Justice Department's ongoing effort to have the company part with its popular Chrome browser and impose other restrictions to curtail the power of its ubiquitous search engine, which another federal judge branded an illegal monopoly in a ruling last August. The remedy hearings in the search case are scheduled to conclude later this month, with a ruling from U.S. District Judge Amit Mehta expected by Labor Day. If the Justice Department is able to persuade the two different judges to order its proposed dismantling of Google, it would be the biggest breakup of a U.S. company since AT&T was forced to spin off its phone service into seven separate regional companies more than 40 years ago. Google's Play Store for apps running on its Android software that powers most of the world's smartphones also was declared an illegal monopoly by a federal jury in 2023 and is battling a judge's order that would require it to overhaul a commission system that generates billions of dollars in annual revenue. But hobbling its search engine and digital ad network would be far bigger blows because they are the key cogs in a business that generated $265 billion in revenue last year. Google is confronting the breakup threats at the same time the advent of artificial intelligence is changing the way consumers are using technology and seeking information online — a shift that could also siphon traffic and money away from a powerhouse that began in a Silicon Valley garage in 1998. Despite the adversity, Google is still delivering robust financial growth to its corporate parent Alphabet Inc., which is currently valued at $2 trillion. Alphabet's shares dipped slightly during Tuesday's late morning trading. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Japan Today
25-04-2025
- Business
- Japan Today
Google's parent begins year with robust growth despite legal, competitive and economic threats
FILE - A sign is displayed on a Google building at their campus in Mountain View, Calif., on Sept. 24, 2019. (AP Photo/Jeff Chiu, File) By MICHAEL LIEDTKE Google's profits soared 50% in this year's opening quarter, overcoming the competitive and legal threats that its internet empire is facing amid an economy roiled by a global trade war. The numbers released Thursday by Google parent Alphabet Inc. indicated the company is rising to the challenge so far, but investors are likely to remain concerned about the turbulent times ahead. The Mountain View, California, company earned $34.5 billion, or $2.81 per share, during the January-March period, up from $23.7 billion, or $1.89 per share, at the same time last year. Revenue rose 12% from last year to $90.2 billion. The results easily exceeded analysts' projections, according to FactSet Research. 'We continued to see healthy growth and momentum across the business,' Alphabet CEO Sundar Pichai told analysts Thursday during a conference call. Alphabet's stock gained more than 4% in extended trading after the numbers came out. The shares had fallen by 16% since the end of last year. Google's first-quarter performance illustrated the continuing power of its long-dominant search engine in a sea of uncertainty. While grappling with competitive threats emerging as artificial intelligence reshapes technology, Google is also battling court decisions condemning its search engine and digital ad network as illegal monopolies. The AI-driven upheaval has opened new opportunities for people to find helpful advice, insights and information through more conversational search options from the likes of OpenAI and Perplexity. Google's long-dominant search engine is countering the new competition with a feature called AI Overviews that appear above web links in its results. It is also testing a conversational tool called AI Mode that would usher in an even more radical change to its business model. 'The company delivered a sound response to those questioning the solidity of the search business amid ever-increasing AI demand,' analyst Thomas Monteiro said. But Google is trying to keep its business intact as by the U.S. Justice Department attempts to break up the company and impose other restraints after a federal judge last year branded its search engine an illegal monopoly. To make matters worse, its digital ad network also was found to be illegally abusing its power earlier this month in another case brought by the Justice Department. President Donald Trump's trade war has injected more uncertainty into the mix by rattling the financial markets amid fears the tariffs will reignite inflation while dragging the economy into a recession. Although Google's digital services aren't directly impacted by the tariffs, a recession would likely curtail the spending on ads that generate most of Alphabet's revenue. But there were few signs of a slowdown in the past quarter. Google's ad revenue during the period totaled $66.9 billion, an 8% increase from the same time a year ago. Although Google's executives are mostly upbeat during Thursday's call, they also acknowledged conditions should the trade war trigger a recession. 'We are obviously not immune to the macro environment,' said Philipp Schindler, Alphabet's chief business officer. The past quarter's steady growth emboldened Alphabet to stand firm on plans to invest $75 billion on AI and other technologies this year while also pursuing approval of a $32 billion deal to buy cybersecurity firm Wiz. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
