🔎 AI-Powered Google Search: And it's Impact on All Business

What’s in today’s Business Edge update?

Today's update is special as we delve into the various announcements from the Google I/O developer's conference. We focus on the imminent changes to Google Search with AI snapshots; we hope to equip businesses and users alike with the necessary information to brace for incoming modifications.

In other news, other AI innovations from Google I/O 2023, Disney+, and Hulu merge for a unified streaming experience, and IBM brings competition heat with Watsonx, the latest AI platform ready to challenge AWS, Google, and Microsoft.

Let’s get started!

🌐 Big Tech Digest

Concise summaries of the most interesting tech news stories from Big Tech.

[1] Google Unveils AI-Powered, Comprehensive Search: A New Era of Interactive Browsing

Google's new Search Generative Experience (SGE), previously known under the code name Magi, is an AI-powered search engine that presents a more interactive, personalized, and visual user interface. However, access to the new platform is currently limited to those on a Google Labs waitlist.

More:

• The new interface may display AI-generated answers above search results.

• Google's SGE uses a variety of large language models including MUM and PaLM2.

• The search experience will avoid certain topics, such as medical and financial queries, to ensure the safety and accuracy of its responses.

• Google's approach to generative AI in search is based on a five-point approach, addressing information needs, information quality, safety constraints, ecosystem, and ads.

• The platform includes citations and links to publishers, encouraging users to dig deeper into source material.

• Search quality raters will provide feedback during the pre-release phase to improve the overall results and user experience.

_{Tags: #AI, #Big tech, #Google}

Read more about it at —> (read time: 15 minutes)

Insight:

Search is a fundamental driver of commerce, whether it's for finding a new pair of shoes or identifying the best software for a business. This exciting development in the search experience ushers in a shift from static, one-dimensional interaction to a dynamic, conversational, and personalized approach.

Website owners continually optimize their content and update their operating systems to attract traffic. Traditionally, quality content has been the key to garnering Google's attention. However, the advent of SGE may alter this dynamic as AI will likely answer most queries. The implications of this change on website traffic, given that users may not visit the sources providing the search results, remain to be seen.

There is a potential for including more paid results in the new AI-answered queries. The question remains whether users will only glance at the AI-provided answer and not click through to the source.

It's well-known that a top 3 ranking for a search query is significantly more valuable than ranking between 5-10, with an exponential drop off in value beyond the top 10. This is primarily because users are most likely to click on the top results and rarely scroll to page two. The new SGE experience dramatically alters this search page dynamic. While AI results may still draw from the top 1-3 results, the nature of queries is set to change.

In the past, users have simplified their questions to optimize search results. For instance, in the video shown at Google I/O, a user might have broken down the complex question, "What's better for a family with kids under 3 and a dog, Bryce Canyon or Arches National Park?" into simpler, sequential queries. The introduction of LLMs, which can understand the intent of more complex questions and deliver a single AI response, revolutionizes this process.

However, the new model may further obscure Google's method of serving results, enabling the potential for embedding ads directly into the AI output. The implications for ad monetization are yet unclear.

An interesting point to note is that, in the Google example, the executive did not delve further into the search results. This could become commonplace, potentially impacting traffic and, by extension, the value for publishers. If content creators aren't able to monetize or derive value from traffic, the incentive to improve content may wane, possibly leading to a decrease in search result quality over time.

For businesses dependent on search traffic and SEO, the rollout of SGE could herald significant changes. Be prepared for a new era in search and its far-reaching implications.

[2] Google Reveals a Slew of AI-Powered Innovations at I/O 2023

The SGE announcement discussed above is the news that we found will have the most far-reaching business impact. However, there was a significant amount of other business-related announcements at Google I/O developer conference; the tech giant announced a notable AI boost to Android. Workspace apps will see AI integration, PaLM 2 for coding, and an update to Google's photo-editing feature, now called Magic Editor, which will allow extensive photo adjustments.

More:

• Google is bringing the generative features of its Bard chatbot into Android messaging

• Workspace apps like Google Docs, Sheets, and Slides will be integrated with Duet AI for enhanced productivity and creativity

• PaLM 2, capable of coding in 100 languages and powering 25 new Google products

• Magic Editor, an upgraded photo-editing tool, will enable extensive photo manipulation, akin to a mobile version of Photoshop

• Android Auto will now support video, gaming, and browsing in cars

_{Tags: #Google, #AI, #BigTech, #Android, #Workspace}

Read more about it at —> (read time: 15 minutes)

Insight:

This latest wave of announcements from Google has far-reaching implications for both the industry and global tech market. It underscores Google's relentless pursuit of AI integration, which we expect will significantly shape user experiences across their software and hardware products. The enhancement of search functionality, Workspace apps, and Android signals a shift towards more AI-powered interactivity and personalization.

[3] Disney Fuses Disney+ and Hulu into a Single App, Aiming for a More Unified Streaming Experience

Disney has announced plans to create a new streaming app that merges content from Disney+ and Hulu for U.S. users. Despite the merger, Disney+, Hulu, and ESPN+ will continue to exist as standalone platforms. This move, revealed by CEO Bob Iger, is seen as an effort to simplify the user experience, offer more robust content, increase audience engagement, and provide better advertising opportunities.

More:

• Former Disney CEO Chapek hinted at this decision back in September 2022, highlighting the need to reduce friction between the different Disney streaming platforms.

• This decision comes amidst rumors that Disney is planning to buy Comcast’s 33% stake in Hulu, solidifying Disney's hold at 100%.

• Other industry players, like Paramount and Warner Bros. Discovery, have made similar consolidation moves.

• The announcement follows the loss of four million subscribers from Disney+ in Q2 2023, while Hulu gained 200,000 subscribers.

Tags: #Big tech, #Streaming, #Disney, #Hulu

Read more about it at —> (read time: 5 minutes)

Insight:

This move has an industry-wide impact as it reflects a broader trend of content consolidation in the streaming industry. We see the potential for more streaming services to follow suit, aiming for a streamlined, all-in-one app approach to combat subscription fatigue and increase user retention. The acquisition of Comcast's stake in Hulu would further strengthen Disney's position in the market. However, the impact of this merger on Disney's subscriber numbers and overall profitability will be a key aspect to watch in the upcoming quarters.

[4] IBM Unveils Watsonx: New AI Platform to Rival AWS, Google, and Microsoft

IBM has announced Watsonx, a next-generation AI platform aimed to compete against Microsoft, AWS, and Google. This AI platform will help businesses in designing and tuning large language models (LLMs) to meet operational and business needs. Watsonx provides a suite of tools for tuning LLMs, a data store based on lakehouse architecture, and an AI governance toolkit. The new platform is an evolution of IBM's Watson AI, with the company intending to meet enterprise requirements in five key areas.

More:

• Watsonx includes a development studio for AI builders to train, test, tune, and deploy both traditional machine learning and new generative AI capabilities.

• IBM's CEO, Arvind Krishna, emphasized that Watsonx allows clients to quickly train and deploy custom AI capabilities across their entire business while retaining full control of their data.

• The platform's AI studio, watsonx.ai, will include a foundation model library and tools for data preparation, model development, and model monitoring.

• IBM is also introducing a data store, Watsonx.data, built on open lakehouse architecture for AI workloads. It can reportedly reduce data warehousing costs by 50%.

• Watsonx.governance, an AI governance toolkit, will be available later in the year to help companies build trusted workflows.

_{Tags: #IBM, #Watsonx, #AI, #Big tech, #Cloud, #SaaS}

Read more about it at —> (read time: 10 minutes)

Insight:

This announcement places IBM as a strong competitor in the global AI market, seeking to challenge the dominance of big tech companies like AWS, Google, and Microsoft. As businesses continue to leverage AI for diverse operational and business requirements, platforms like Watsonx are poised to offer comprehensive solutions, from tuning large language models to providing robust AI governance tools. This move is expected to have an industry-wide impact, particularly for tech investors and entrepreneurs seeking advanced AI solutions. The introduction of Watsonx signals an increased commitment from IBM to invest in AI, which can influence other tech firms to enhance their AI offerings.

⚡️Tech bites

Brief news summaries from the world of startups that provide quick and easy-to-consume information.

Microsoft has signed a power purchase agreement with nuclear fusion startup Helion Energy, marking the first time a fusion company has secured such a deal. The contract stipulates that Microsoft will buy electricity generated by Helion in 2028. The ambitious timeline reflects Helion's strong plan to deliver on its fusion technology, backed by investors including OpenAI founder Sam Altman. (link)

Epic Games CEO, Tim Sweeney, rejects claims that the metaverse is "dead", citing 600 million active users across platforms like Fortnite and Minecraft. He continues to champion online virtual worlds despite criticism. (link)

SoftBank's Vision Fund reported a loss of approximately $2B in Q4, resulting in a total full-year loss of about $32B. Annual investments dropped to around $3B. (link)

Unity's Q1 revenue increased 56% YoY to $500M, surpassing estimates, despite a net loss up 43% YoY to $254M. Q2 revenue guidance also exceeded analyst projections. (link)

Tech firms are hiring more in South and Central America due to similar time zones and lower pay acceptance for remote hires compared to the US. (link)

Anthropic, an Alphabet-backed AI startup, has disclosed the moral values guidelines used to train and ensure the safety of Claude, its AI bot, rivaling OpenAI's ChatGPT. (link)

Freshworks reported its first adjusted operating profit of $3.9M as a public company with Q1 2023 revenue up 20% to $137.7M; the firm raised its full-year 2023 financial forecast. (link)

Vanta, a trust management platform, received investments from Atlassian Ventures, HubSpot Ventures, and Workday Ventures, strengthening its partnership with CrowdStrike to enhance compliance and security operations. (link)

Scale AI has launched its "Enterprise AI Platform", a full-stack generative AI solution that allows large enterprises to utilize large language models (LLMs) in-house, enhancing data security and customization. (link)

🔍 Extra

A mix of learning links, software products, deals, and other interesting content.

Tech firms are hiring more in South and Central America due to similar time zones and lower pay acceptance for remote hires compared to the US. (link)