At the Google I/O annual conference in Mountain View, California (USA) on May 20 (local time), Google announced a series of improvements in artificial intelligence (AI), including the launch of "AI Mode" mode for all users in the US and premium subscription packages to expand the ability to use AI.
AI Mode was tested in March, now allowing users to get AI-cyphered answers instead of traditional linking lists. At the same time, the AI Ultra Plan membership package worth $249.99 per month provides higher AI usage limits, early access to testing tools such as Project Mariner - a browser utility that can automatically operate - and Deep Think, a premium Gemini version with deeper theoretical capabilities.
CEO Sundar Pichai said that Google is building AI with the goal of saving costs for users, while emphasizing: "We continuously provide the best models at the most cost-effective prices". He also affirmed that AI is expanding the use of situations in search, rather than completely replacing it.
Google also demonstrated a series of AI-enabled hardware devices such as smart glasses integrated with new Android XR software. During a performance, two Google employees discussed in two different languages and the glasses automatically displayed the English version in their glasses. An XR headphone in collaboration with Samsung has also been announced, expected to launch later this year.
The Gemini app currently has more than 400 million monthly active users. In addition to the high-end package, Google also offers other subscription options, from $19.99 per month with some expanded AI features, to cheaper packages that only include storage capacity. As of last week, more than 150 million people have signed up for these packages.
However, there are challenges. Earlier this month, Alphabet lost $150 billion in market value in just one day after an Apple director said search volume through Safari browsers had declined for the first time due to the popularity of AI tools. Some experts predict that Google's search market share could fall from 90% to less than 50% in the next 5 years.
However, Google is still optimistic that AI will open up new opportunities for advertising - the company's main source of revenue - as users search for more complex questions. The company plans to spend up to $75 billion on AI investment this year, up sharply from $22.5 billion in 2024.
Other performances at the conference show that AI can automatically add events to the calendar by scanning invitations via phone cameras, or creating vivid videos and sounds with the new Veo 3 model - aimed at professional content creators.
Google is showing a drastic transformation to maintain its central role in the AI era.
