Google's Gemini AI assistant has not yet introduced advertising, but this may change in the future. During Alphabet's investor conference call, CEO Sundar Pichai stated that the company has "very good ideas" on how to incorporate advertising into Gemini's future. Although users can currently access Gemini through free or paid subscription models, ads may become a part of the product.
In response to a question from a Wells Fargo analyst about Gemini's profit opportunities, Pichai said, "In terms of profitability, we are currently focused on the free tier and subscription model. But as you have seen with Google over the years, we always prioritize user experience and indeed have very good ideas about the concept of native advertising." He further emphasized that advertising is a crucial part of Google's strategy, similar to the model used for YouTube, and the company will gradually provide options for users.
Although Pichai did not specify when ads would be introduced to Gemini, he mentioned that the company will mainly focus on the subscription model this year. This means that, at least in the short term, users do not need to worry about ads appearing in Gemini. However, considering that Google's core business relies on advertising revenue, the addition of ads in Gemini seems inevitable in the future. In fact, ads have already appeared in other AI products from Google, such as the AI overview feature.
Additionally, Google has announced plans to invest $75 billion in capital expenditures in 2024 to maintain its leadership in the field of artificial intelligence. This substantial investment underscores Google's commitment to AI technology and also hints at the importance of Gemini in future profit models.
While Google has not yet made specific comments on its advertising plans for Gemini, Pichai's remarks indicate that the company is actively exploring ways to achieve profitability through advertising while maintaining user experience. As Gemini continues to evolve, both users and investors will closely watch how Google balances innovation, user experience, and business interests.
