Google has announced a new AI mode for its search engine, allowing users to conduct more complex and extended queries, thereby enriching the search experience beyond conventional links and advertisements. This development arrives amid concerns from analysts and website publishers about the potential decrease in Google's advertising income due to the shift towards AI-generated summaries, which could diminish user traffic to external websites.

At its annual developers conference, Google unveiled that its most sophisticated AI tools would be available in a new 'Ultra' subscription tier, priced at $250 per month. This initiative emphasizes the company's strategic focus on monetizing its AI innovations. CEO Sundar Pichai highlighted that this new AI mode represents a significant advancement, resulting from "decades of research."

The new AI mode surpasses the previously introduced AI Overviews by providing answers to queries using Google's generative AI capabilities, positioning these above the standard blue links to websites and ads. Liz Reid, Google's head of search, describes the AI mode, currently available in the US, as a robust tool offering advanced reasoning, multi-modality, and deeper search capabilities. It is designed to search the entire web more comprehensively than traditional search methods.

Since its debut at last year's developers conference, Generative AI Overviews have expanded to over 1.5 billion users globally. Pichai noted that this makes Google Search the leading platform for bringing Gen AI to a wide audience. User satisfaction with AI Overviews is increasing, leading to more frequent searches in key markets like the US and India.

Concerns remain regarding the transition from traditional "blue links" to AI-generated summaries, which could reduce ad revenue opportunities. This shift also poses a threat to website publishers, including news organizations and Wikipedia, who rely on Google search links as a primary source of internet traffic.

Adding to these concerns, Apple executive Eddy Cue recently testified that Google's search traffic on Apple devices declined in April, marking the first such decrease in over two decades. Cue suggested that Google is losing ground to AI alternatives like ChatGPT and Perplexity, causing Google's shares to drop. The possibility of Apple introducing AI alternatives as default search options on its devices further intensifies concerns about Google's advertising revenue.

This testimony occurred during an antitrust trial where a federal judge may order Google to divest key businesses due to its search engine being deemed an illegal monopoly.

Google's annual developers conference also aims to foster relationships with app developers and online service creators, encouraging them to align with Google's offerings. This year's conference showcased AI innovations, including real-time speech translation, virtual clothing try-ons using personal photos, and AI agents that monitor and purchase items at optimal prices.

Google is integrating AI agent capabilities into Chrome and the Gemini AI app, initially for subscription-based users. Pichai asserts that these enhancements will continuously improve user engagement on the web. Google's advanced AI tools will be available through an "Ultra" subscription tier, priced at $250 per month.