Google is considering introducing charges for advanced functionalities on its AI-powered search engine. These features might become part of Google's subscription packages, which currently include services like the Gemini AI assistant integrated into Gmail and Docs. Although this would mark the first instance of Google placing core products behind a paywall, the basic search engine would remain free, with advertisements appearing alongside results even for subscribers. While Alphabet's stock experienced a slight dip of around 1% after the report, Google reiterated its dedication to enriching subscription offerings with premium features, dismissing any notions of introducing an ad-free search experience.

Why does this matter?

This move underscores Google's aspiration to excel in the fiercely competitive AI domain. Despite its pioneering role in AI technology, Google faces formidable competition from entities like OpenAI and Microsoft, its backer.