As the world of search engines evolves, the debate between Generative AI and traditional link-based results has taken center stage. However, the real battle isn’t about choosing one format over the other; it’s about determining when to show each type of result. I’ve written about the rise of search within AI as this trend is expected to continue. Yahoo is embracing a dual search strategy that combines the power of generative AI with the familiarity of traditional links. This approach raises important questions about user intent, cost considerations, and the future of search.
Yahoo CEO Embraces Dual Search Strategy
Yahoo CEO Jim Lanzone recently revealed that the company’s search bar will not choose between AI-generated answers and standard, Google-style lists of blue links. Instead, Yahoo will employ a blended approach, using both formats depending on the user’s query.
Lanzone stated, “For some queries, it is just generative AI. And for some, it is just a link. And every version in between.” This dual strategy reflects a growing trend among search engines to adapt to the evolving landscape of search.
Search Engines Embrace Blended AI Strategy
The idea that search results will be limited to either 10 blue links or a few AI-generated paragraphs is a misconception. Major search engines, including those that prioritize generative AI, are working towards inferring user intent based on queries and providing answers in the most appropriate format.
Aravind Srinivas, CEO of generative AI search engine Perplexity, emphasized that a 100% generative approach makes no sense and that a blend of answers is the way forward.
Search Giants Vie for Intent Understanding
Yahoo, Perplexity, Google, and Microsoft are all focused on determining the intent behind user queries before deciding which results format to display. Bing, for example, is already incorporating its AI-generated “Copilot” answers at the top of some results pages, with traditional results below.
Google is also experimenting with its Search Generative Experience answers, showing them only for certain queries. The success of these search engines will depend on their ability to accurately infer user intent and decide when to show expensive generative AI answers.
AI Search Evolution Hinges on Intent and Cost
Lanzone emphasized that the decision to use generative AI or traditional links depends on the query, stating, “That’s going to unleash a different tree structure for what you might present, or what you might do, that as you follow that down it just continues to evolve.”
However, even if search engines can perfectly determine user intent, they must also consider the cost of displaying generative AI answers. These answers require significantly more computing resources to produce, making them very expensive to generate.
Generative AI’s Costly Dilemma for Google Search
The cost of generative AI answers poses a unique challenge for search engines, particularly Google, which relies heavily on advertising revenue. In addition to the increased computational costs, generative AI answers do not have a proven advertising business model.
This means that search engines displaying AI responses will have to pay more to serve them while potentially sacrificing ad revenue. Google is currently considering charging for generative AI results to address this dilemma.
Yahoo Evaluates Search Strategy in AI Era
As Yahoo’s search results are currently powered by Microsoft’s Bing, the company is in evaluation mode, assessing how to approach this new era of search.
Lanzone stated that the company’s strategy will depend on the category and that they are considering all options, including deepening their partnership with Microsoft.
Perplexity Touts Flexibility With No Business Model
Perplexity, a standout among the new wave of generative AI startups, benefits from its lack of a business model. This allows the company more flexibility than most to experiment with the ratio of traditional to AI results. Srinivas stated, “No business model, no margins,” highlighting a potential advantage in the evolving search landscape.
As search engines navigate the integration of generative AI and traditional links, the real competition lies in determining the optimal balance between the two formats. The future of search will be shaped by the ability of search engines to accurately infer user intent and make cost-effective decisions about when to display AI-generated answers.
While the journey ahead presents challenges, particularly for advertising-based models like Google, the blended approach embraced by Yahoo and others offers a glimpse into the future of search – one where generative AI and traditional links coexist to provide users with the most relevant and valuable results.
If you need assistance understanding how to leverage Generative AI in your marketing, advertising, or public relations campaigns, contact us today. Custom training workshops are available. Or, schedule a session for a comprehensive AI Transformation strategic roadmap to ensure your marketing team utilizes the right GAI tech stack for your needs.
Read more: The Search Battle: When to Show GenAI vs. Traditional Links
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