Google's AI Answers Now 80% Cheaper to Generate

Google SGE AI Answers are artificial intelligence-generated responses that appear within Google's search results. They are designed to provide direct answers to user queries. Initially, these AI overviews were costly to run, but Google has worked on reducing the costs. The impact on search results is significant as they aim to provide more efficient answers, triggering only when Google believes they would be better than a traditional set of search results.

Google implemented several strategies to reduce the cost of generating SGE AI Answers by 80%, including:

• Hardware improvements: Upgrading or optimizing the hardware used to run the AI models.
• Engineering advancements: Refining the algorithms and processes involved in generating AI responses.
• Technical breakthroughs: Innovating new methods or technologies that enhance the efficiency of AI model computations.

These efforts combined have led to significant cost reductions since the feature was first introduced in Google Labs.

The concern about the lack of clicks generated by Google SGE AI Answers stems from the potential impact on organic and paid search traffic. As AI Answers provide direct responses within the search results, users may find the information they need without clicking through to a website. This could lead to a decrease in organic traffic for content providers and may also affect the performance of paid search ads, as there may be fewer opportunities for ad impressions and clicks.