Is LaMDA a Threat to Google Search's Advertising Power?

Is LaMDA a Threat to Google Search's Advertising Power?

News by Anja Paspalj
Published: December 30, 2022

Following the rollout of ChatGPT, the question of when Google plans to unveil its breakthrough conversation technology, LaMDA, is under fire.

ChatGPT’s quick rise to popularity, a total of one million users within five days, left users wondering if Google’s own AI-powered solution is set for release and whether the company is falling behind on artificial intelligence solutions.

"We are absolutely looking to get these things out into real products and into things that are more prominently featuring the language model," stated Jeff Dean, head of Google’s AI division at a recent meeting at Google.

In the third quarter of 2022, 73% of Google advertising came from the Google Search segment. LaMDA’s implementation will certainly enhance the power of Google Search’s search queries, but what remains to be seen is how it will affect online advertising.

The NLP software aims to yield more precise searches, which could, in turn, eliminate users’ need to visit other websites, minimizing the necessity of Google Search ads. This is a particularly important factor to consider since Google’s “year-over-year growth rate slowed to 4%.”

Although this may be due to the prevailing economic conditions, it is no secret that alternative ways to search the Internet are becoming available.

In the case of LaMDA implementation, the question is whether Google’s user experience and advertising power will work against each other. And if so, whether the core of Google’s success and advertising potential would be forced to innovate.

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