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Hello reader,
I learned about the launch of Google’s new AI Overviews feature – which gives users an AI-generated synopsis of their query – from my partner. He sent me a few links about it, and he was laughing at how terrible some of the answers it generated were.
An often-cited example is how the AI Overviews told a user to “add about 1/8 cup of non-toxic glue to the sauce to give it more tackiness” when asked how to make cheese stick to pizza, drawing from a parody article instead of a real source. A big facepalm moment, if you ask me.
Still, while there are lots of things about Google’s AI Overviews that need to be fixed, we can’t deny that its arrival could spell out a different future for companies that rely on web searches for discoverability and acquisition. My colleague Scott unpacks this in today’s premium story.
Today we look at:
- What Google’s AI search means for businesses – and the tech industry
- How Alibaba’s plans to use generative AI to help cross-border merchants
- Other newsy highlights such as EV maker BYD’s plans for a factory in Turkey and an Indian edtech firm’s latest acquisition
Premium summary
At this point, can AI just do the Googling for me?
Image credit: Timmy Loen
AI Overviews has been positioned as a new version of Google’s search engine that gives users an AI-generated synopsis to their query, instead of the usual lists of web pages and links. What impact will it have on the tech industry at large? Let’s go deeper.
- Panic at the search engine: The arrival of AI Overviews has caused widespread concern in the tech industry, particularly among businesses that rely on web traffic and advertising revenue. Research from Gartner anticipates that by 2026, traffic generated by traditional search engines will drop by 25%, with the majority of traffic going to AI chatbots and other virtual agents. Advertising, which is often directly correlated to web traffic, is also expected to take a hit.
- Users first: While AI Overviews may negatively affect Google’s advertising business, the company appears to be prioritizing user experience over monetization, recognizing the shift in user behavior toward AI-powered solutions. However, the new feature is facing several issues, such as hallucinations and not being able to tell parody from reality.
- Adapt or lose: Search engine optimization strategies will be greatly impacted. Businesses will need to focus on creating high-quality, original, and engaging content to stand out and attract users, as organic search traffic is likely to decrease.
Read more: Error 404: Web not found, killed by Google’s AI search
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