Google’s Sundar Pichai said in an interview that AI Overviews sends more traffic to a wider set of websites, insisting that Google cares about the web ecosystem and that he expects AI Mode to continue to send more traffic to websites, a claim that the interviewer challenged.
AI Agents Remove Customer Relationship Opportunities
There is a revolutionary change in how ecommerce that’s coming soon, where AI agents research and make purchase decisions on behalf of consumers. The interviewer brought up that some merchants have expressed concern that this will erode their ability to upsell or develop a customer relationship.
A customer relationship can be things like getting them to subscribe to an email or to receive text messages about sales, offer a coupon for a future purchase or to get them to come back and leave product reviews, all the ways that a human consumer interacts with a brand that an AI agent does not.
Sundar Pichai responded that AI agents present a good user experience and compared the AI agent in the middle between a customer and a merchant to a credit card company that sits in between the merchant and a customer, it’s a price that a merchant is willing to pay to increase business.
Pichai explained:
“I can literally see, envision 20 different ways this could work. Consumers could pay a subscription for agents, and their agents could rev share back. So you know, so that that is the CIO use case you’re talking about. That’s possible. We can’t rule that out. I don’t think we should underestimate, people may actually see more value participating in it.
I think this is, you know, it’s tough to predict, but I do think over time like you know like if you’re removing friction and improving user experience, it’s tough to bet against those in the long run, right? And so I think, in general if you’re lowering friction for it, you know, and and people are enjoying using it, somebody’s going to want to participate in it and grow their business.
And like would brands want to be in retailers? Why don’t they sell directly today? Why don’t they sell directly today? Why won’t they do that? Because retailers provide value in the middle.
Why do merchants take credit cards? There are many parts like and you find equilibrium because merchants take credit cards because they see more business as part of taking credit cards than not, right. And which justifies the increased cost of taking credit cards and may not be the perfect analogy. But I think there are all these kinds of effects going around.”
Pichai Claims That Web Ecosystem Is Growing
The interviewer began talking about the web ecosystem, calling attention to the the “downstream” effect of AI Search and AI search agents on information providers and other sites on the web.
Pichai started his answer by doing something he did in another interview about this same question where he deflected the question about web content by talking about video content.
He also made the claim that Google isn’t killing the web ecosystem and cited that the number of web pages in Google’s index has grown by 45% over the past two years, claiming it’s not AI generated content.
He said:
“I do think people are consuming a lot more information and the web is one specific format. So we should talk about the web, but zooming back out, …there are new platforms like YouTube and others too. So I think people are just consuming a lot more information, right? So it feels like like an expansionary moment. I think there are more creators. People are putting out more content, you know, and so people are generally doing a lot more. Maybe people have a little extra time in their hands. And so it’s a combination of all that.
On the web, look things have been interesting and you know we’ve had these conversations for a while, you know, obviously in 2015 there was this famous, the web is dead. You know, I always have it somewhere around, you know, which I look at it once in a while. Predictions, it’s existed for a while.
I think web is evolving pretty profoundly. When we crawl, when we look at the number of pages available to us, that number has gone up by 45% in the last two years alone. So that’s a staggering thing to think about.”
The interviewer challenged Pichai’s claim by asking if Google is detecting whether that increase in web pages is because they’re AI generated.
Pichai was caught by surprise by that question and struggled to find the answer and then finally responded that Google has many techniques for understanding the quality of web pages, including whether it was machine generated.
He doubled down on his statement that the web ecosystem is growing and then he started drifting off-topic, then he returned to the topic.
He continued:
“That doesn’t explain the trend we are seeing. So, generally there are more web pages. At an underlying level, so I think that’s an interesting phenomenom. I think everybody as a creator, like you do at The Verge, I think today if you’re doing stuff you have to do it in a cross-platform, cross-format way. So I think things are becoming more dynamic cross-format.
I think another thing people are underestimating with AI is AI will make it zero-friction to move from one format to another, because our models are multi-modal.
So I think this notion, the static moment of, you produce content by format, whereas I think machines can help translate it from, almost like different languages and they can go seamlessly between. I think it’s one of the incredible opportunities to be unlocked.
I think people are producing a lot of content, and I see consumers consuming a lot of content. We see it in our products. Others are seeing it too. So that’s probably how I would answer at the highest level.”
Related: The Data Behind Google’s AI Overviews: What Sundar Pichai Won’t Tell You
Search Traffic and Referral Patterns
The interviewer asked Pichai what his response is to people who say that AI Overviews is crushing their business.
Pichai answered:
“AI mode is going to have sources and you know, we’re very committed as a direction, as a product direction, part of why people come to Google is to experience that breadth of the web and and go in the direction they want to, right?
So I view us as giving more context. Yes, there are certain questions which may get answers, but overall that’s the pattern we see today. And if anything over the last year, it’s clear to us the breadth of where we are sending people to is increasing. And, so I expect that to be true with AI Mode as well.”
The interviewer immediately responded by noting that if everything Pichai said was true, people would be less angry with him.
Pichai dismissed the question, saying:
“You’re always going to have areas where people are robustly debating value exchanges, etc. … No one sends traffic to the web the way we do.”
See also: Google’s AI Overviews Slammed By News Publishers
Oh, Really?
What do you think? Are Google’s AI features prioritizing sending traffic to web sites?
Watch the Sundar Pichai interview here:
Featured image is screenshot from video
