Google (GOOGL) is testing a new, AI-driven version of its Search engine designed to significantly alter the user experience. Currently available only to Google One AI Premium subscribers, this experimental “AI Mode” is designed to replace the classic ten blue links with an AI-generated summary of the search query.
Google stated that the AI Mode is driven by a customized version of its advanced Gemini 2.0 model. This model allows users to find answers to complex queries, including those related to coding, mathematics, and multimodal searches. According to Robby Stein, Google’s VP of Product, the decision to launch AI Mode came from the desire among premium users for more AI-generated responses. The new feature is accessible on the results page of any search query; Google One AI Premium users can activate it by clicking on the “AI Mode” tab, located alongside existing navigation options like “Images” and “Maps.”
The Google One AI Premium subscription, priced at $19.99 per month, includes additional cloud storage and access to premium AI tools. The current testing phase aims to gather user feedback on the quality and practical use of AI Mode. In instances where the model lacks complete confidence in its output, it may revert to providing traditional webpage links instead of a comprehensive AI overview, and some responses may include personal opinions.
Google plans to refine and update the AI Mode based on user feedback, incorporating new features such as image and video responses. This follows the launch of AI Overviews in the U.S. in May 2024, wherein summaries initially appeared at the top of search results, complemented by the traditional blue links. AI Mode takes this a step further, providing a more detailed AI summary enriched with hyperlinks to referenced webpages, alongside a search bar promoting follow-up questions. The expansion of AI Overviews to a broader user base, including teens without the need to sign-in, is also underway.
Wall Street analysts hold divided opinions on Alphabet’s (GOOGL) stock performance, especially given that Google’s stock has seen a gain of 32.2% over the past year. On TipRanks, GOOGL has a Moderate Buy consensus rating, based on 26 Buy ratings and 11 Hold ratings. The average Alphabet Class A price target of $215.56 suggests a potential 24.6% increase from present levels.
