Google’s latest earnings report has highlighted a significant slowdown in its search revenue growth, which increased by only 12 percent, falling short of investor expectations. This disappointing figure has led to a stock drop of up to ten percent. While the company’s cloud revenue has more than doubled to $30.7 billion, the slower growth in search revenue has raised alarms about the effectiveness of Google’s transition to its new AI-driven search model.
Google has acknowledged that its rapidly growing AI mode is generating less revenue compared to traditional search methods. In response to these challenges, the company is now expanding its AI mode advertising program to international markets. This move aims to enhance revenue potential as Google navigates the complexities of integrating AI into its core search functionalities.
Compiled automatically by the Tech AI Newsdesk from public AI-news sources and summarised in our own words.
