Google’s Innovator’s Dilemma

Google is in the middle of its own Innovator’s Dilemma: disrupting its $260 billion-a-year search business before someone else does. The question isn’t who will build the AI version of Google Search – the answer is obvious: Google – so our friends in Mountain View have a couple of things they’re testing.

First, they will roll out AI Overviews, their search summary tool, globally in multiple languages (including English, Hindi, Japanese, Korean, and Spanish). You’ve probably seen it – instead of a list of links, users get AI-generated summaries at the top of their search results. Publishers and eCommerce sites hate it (AI bots don’t pay royalties, click ads, or cite every source), but users seem to like it… at least when the results are accurate.

The new-new thing is called “AI Mode.” Instead of surfacing links, AI Mode delivers a full-page AI-generated response. Users can interact with the AI, ask follow-up questions, and even compare products. This mode runs on a custom Gemini 2.0 version and is currently available to Google One AI Premium subscribers. It’s super interesting, but I’m not sure it’s going to be the replacement for ten blue links.

AI search is inevitable, and competitors like Perplexity and GPTSearch are rethinking the experience, but my money is still on Google. While AI Overviews and AI Mode may not even resemble what search ultimately evolves into, this is what navigating the Innovator’s Dilemma looks like. As for link-based search? We’re just counting the days.

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it. This work was created with the assistance of various generative AI models.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.

Tags

Categories

PreviousThe LA Times’ AI Experiment Sparks Backlash NextEasel-y Offended: 6,000 Artists Draw the Line

Get Briefed Every Day!

Subscribe to my daily newsletter featuring current events and the top stories in AI, technology, media, and marketing.

Subscribe