Google will use new AI models for ads and help YouTube creators

GoogleCNBC’s effort to quickly add new AI technology to its core products is making headway in the advertising world, CNBC has learned.

The company has greenlighted plans to use generative AI, powered by large language models (LLMs), to automate advertising and ad-supported consumer services, according to internal documents.

Last week, Google unveiled PaLM 2, its newest and most powerful LLM, trained on tons of text data that can provide human-like responses to questions and commands. Some groups within Google are now considering using PaLM 2-based tools to allow advertisers to generate their own media assets and suggest videos to YouTube creators, the documents show.

Google also tested PaLM 2 for YouTube youth content for things like titles and descriptions. For creators, the company used technology to experiment with the idea of ​​providing five video ideas based on topics that seem relevant.

With the AI ​​chatbot craze rapidly spreading through the tech industry and capturing the fascination of Wall Street, Google and its peers, including Microsoft, Meta And Amazon, are rushing to integrate their most sophisticated models into as many products as possible. The urgency is particularly acute at Google since the public launch late last year of MicrosoftOpenAI’s ChatGPT, backed by OpenAI, raised concerns that the future of internet search was suddenly up for grabs.

Meanwhile, Google has been mired in a multi-quarter period of subdued revenue growth after nearly two decades of steady and rapid expansion. With fears of a recession mounting since last year, advertisers have been reeling from online marketing budgets, wreaking havoc on Google, Facebook and others. Specific to Google, paid search ad conversion rates have declined this year across most industries.

Beyond search, email and spreadsheets, Google wants to use generative AI offerings to increase spend to boost revenue and improve margins, the documents say. An AI-powered customer support strategy could potentially apply to more than 100 Google products, including Google Play Store, Gmail, Android Search and Maps, according to the documents.

Automated support chatbots could provide specific answers through simple, clear sentences and allow follow-up questions to be asked before suggesting an advertising plan that would best suit an inquisitive customer.

A Google spokesperson declined to comment..

Google recently offered Google Duo and chat support, allowing users to use simple natural language to get answers to cloud-related questions, such as how to use certain cloud services or features, or to get detailed implementation plans for their projects.

Google is also working on its own in-house Stable Diffusion-like product for creating images, according to the documents. Stable Diffusion’s technology, similar to OpenAI’s DALL-E, can quickly render images in different styles with textual direction from the user.

Google’s plan to push its latest AI models into advertising comes as no surprise. Last week, Facebook parent Meta unveiled AI Sandbox, a “testing ground” for advertisers to try out new AI-powered generative advertising tools. The company also announced updates to Meta Advantage, its portfolio of automated tools and products that advertisers can use to enhance their campaigns.

On May 23, Google will showcase new technologies for advertisers at its annual event, Google Live Marketing. The company didn’t give details on what it will announce, but it’s clear that AI will be a central theme.

“You’ll discover how our AI-powered advertising solutions can help you multiply your marketing expertise and drive powerful business results in today’s changing economy,” the event’s website reads.

SHOW: AI takes center stage at Google I/O