People are wondering how Google plans to make money on AI

The numbers are in for Q3 2023, guess how much Google spent on AI that quarter; $8 billion! Now, guess how much money it made off of AI that quarter. Well, it certainly wasn’t $8 billion. Now, investors and analysts are wondering how Google plans to monetize its AI products, according to a new report.

This might not be a huge deal for the average Joe, but if you’ve invested in the company, then you might be keeping an eye on the company. As per the company’s earnings report, Google’s cloud business saw a decline that quarter. This, coupled with the fact that Google spent so much money on AI last quarter has people wondering what the company is going to do to make AI more lucrative.

We all know that Google more than recuperated the cost with its ad business. However, that doesn’t do anything for investor confidence.

Investors and analysts want to know how Google plans to monetize

During the company’s latest earnings call, Google executives were presented with some heavy questions. These were about its plans for AI questions revolved around how the company plans to gain some income from AI. As we previously reported, Brian Nowak, managing director for Morgan Stanley, asked the company if there was any tangible sign that the company’s investments were generating a return. This question was centered around the Google Search Generative Experience (SGE).

Pichai responded that it will show “a wider range of sources on the results page, creating new opportunities for content to be discovered.” By this, we’re sure that he means more opportunities to show people ads. Ostensibly, that could lead to more income, but that remains to be seen. The issue with this is that the SGE gives you an AI-generated response to your search query. This eliminates the need to click on search results.  That could lead to a decrease in the number of ad clicks.

Right now, we’re still in the early days of this AI age. It seems that Google is optimistic about it. However, the company is going to need to focus on monetizing its AI products. these services are rolling out now, so we’ll have a better idea of how this is going to go in the near future.