Alphabet Inc’s Google (GOOGL.O) announced on Tuesday, May 23, that it will begin experimenting with search ads powered by generative artificial intelligence to compete with Microsoft (MSFT.O) in the lucrative search ad market.
In recent months, Google and Microsoft have made efforts to help people find information by building generative AI into their search engines that can provide written answers to conversational queries, synthesize information online, and display it on relevant websites. It’s stepping up the competition to change the way we do things.
AI capabilities will also change the way advertisers reach consumers through search engines. Research firm MAGNA expects this market to grow to $286 billion this year.
For example, in the new version of Google, when a user searches for “hiking backpack for kids,” AI can show ads for specific backpacks and tips on how to choose the best backpack for kids.
Earlier this month, Google had unveiled a new version of its search engine called “Search Generative Experience,” which will be rolling out through a waiting list in the coming weeks.
At the annual Google Marketing Live Event on Tuesday, Google had additionally announced a new conversational AI chatbot to help brands create ads which will recommend headlines, specific keywords and images to include in the ad to grab the consumer’s attention when an advertiser types into a website.
Tech giants already offer tools that can automatically generate ads for brands. Now, Google has stated that the tool will include generative AI capabilities that will enable it to create ads based on the context of users’ search queries.