Artificial intelligence is challenging Google's advertising business to exceed the mobile Internet
May 21 (UPI) -- The rise of smartphones has affected Google's advertising profit engine, and it took the internet giant years to adapt to the new mobile world, foreign media reported. But for Google, the next wave of computing will be even more challenging.
At this week's I/O developer conference near Google's Silicon Valley headquarters, the company showed off a new technology. The technology is becoming less and less dependent on physical devices as it delivers information and services to consumers through the screen. One Google executive said the company wanted to promote the technology to users first and then consider making money from it.
Google Home is able to collect a user's voice questions in the living room and then answer them via artificial intelligence "Google Assistant" voice. Google will join forces with Levi's to launch Commuter Jacket next year. The jacket can be wirelessly connected to a smartphone, allowing the wearer to answer calls and perform a variety of actions, including Google Maps directional navigation, using the "Jacquard Tag" fabric gesture sensor on the cuffs of the jacket.
Google's Project Soli micro-radar enables space typing, a project designed to design a non-touch user interface that allows users to manipulate electronic devices using the micro-radar. Even Google's latest smartphone design, the Ara, is no longer like a device, but more like a frame that phone accessories can plug in and out.
Sundar Pichai, Google's chief executive, calls the technology "environmental" computing, where consumers can always surround themselves wherever they are. According to Pichay's vision, this will be one of the most important changes in the technology industry over the next decade. But it's unclear how Google will generate revenue.
By displaying text ads in search results on computer and smartphone screens, Google's main business, keyword ad search, currently earns more than $40 billion a year. But when search results are provided by Google's artificial intelligence voice assistant, existing ad models won't work.
"If Google's technology vision becomes a reality, where will the company's keyword advertising business go?" Today's ubiquitous keyword search advertising business is dying out," said Carlos Kirjner, an analyst at Sanford C. Bernstein. "If the mobile Internet is a major transformation of Google, this time it's much more than that."
When the phone's screen starts displaying search results, Google's screen space to display ads next to its search list has shrunk dramatically. This led to deep rethinking and investor questioning, which led to a prolonged slump in the company's share price and eventually forced Google to overhaul search results and advertising. Today, paid results appear more frequently at the top of mobile search results, and some ads have become more like deals, allowing Google to charge a percentage of its commission rather than charging advertisers for clicking on links, as it has done in the past.
Mr. Korner argues that environmental calculations will force Google to consider more ways to make money. "The calculations around will dramatically change Google's business model and may require Google to get more value from trading rather than advertising," the analyst said in an investor note. Compared with the surrounding calculations, the mobile Internet is a small thing, and the user interface will be completely adjusted. "
In his first public comments at the developer conference on Friday, John Giannandrea, Google's new head of search and artificial intelligence, said the company would first develop artificial intelligence personal assistants before focusing on how to make money from them.
Asked about the profitability of the product, he said: "We're really thinking about developing technologies that users are happy to use." Google has a long track record of developing practical technology. When users find these techniques useful, they make them in large quantities. Only then will we consider how to generate revenue. "
In the world of computing around, users will rarely interact with ads. Google's future marketing messages will be more targeted and therefore more valuable to advertisers, the sources said.
The line is blurred
While Google's artificial intelligence system is still in its early stages of development, it will blur the line between Google's free and paid search results. Even Allo, Google's new artificial intelligence messaging app, doesn't know how to present ads, as well as other paid information and services, to users.
"What happens when users ask Google's personal assistant to complete a specific transaction?" says Mr Korner. "Will the system select the best item for the user without the merchant paying Google?" Or in the user's knowledge, choose the merchant to pay, but the quality is not the best product? "We're not smart enough to judge these issues," he said. "
"We act as a universal rule that clearly determines what sponsorship is and what is organic, " says Mr Giannandrea. Products like Google Home are not yet available, and Google is still considering how to roll out such services to users. "
The decision was made because Google's artificial intelligence efforts are still in their infancy. Over the past four years, Google's AI development efforts have focused on solving "unresolved big problems" in computing science, such as understanding users' language and conversations. For Google, designing new ad formats and changing its business model still has a long way to go.
One way Google is making money from artificial intelligence is by making artificial intelligence technology available to other companies over the Internet as a service. Earlier this year, Google provided vision recognition technology to users through its cloud computing business.
"Our natural language application interface has become part of the cloud platform, and users are experiencing this service, which is critical to us," says Mr Giannandrea. He added that Google plans to launch more artificial intelligence cloud services.
Of course, Google also needs more cloud computing subscription fees to replace revenue and profits from text search ads. As the concept of "devices" fades, Google must find new ways to make money from increasingly unsyscionable businesses.
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