Google will use new artificial intelligence models for ads and help YouTube creators

Google’s push to rapidly add new artificial intelligence technology to its core products is moving into the world of advertising, CNBC has learned.

The company has greenlit plans to use generative artificial intelligence powered by large language models (LLM) to automate advertising and ad-supported consumer services, according to internal documents.

Last week, Google introduced PaLM 2, its latest and most powerful LLM trained on a collection of text data that can provide human-like responses to questions and commands. The documents show that certain groups within Google now plan to use tools that work with PaLM 2 to allow advertisers to create their own media assets and offer videos to YouTube creators.

Google is also testing PaLM 2 for YouTube youth content for things like titles and descriptions. For creators, the company is using technology to test the idea of ​​presenting five video ideas based on topics that seem relevant.

With the AI ​​chatbot craze sweeping the tech industry and enthralling Wall Street, Google and its peers, including Microsoft, Meta and Amazon, are rushing to incorporate their most sophisticated models into as many products as possible. The urgency has been particularly acute at Google since the public release of Microsoft-backed OpenAI’s ChatGPT late last year raised concerns that the future of internet search could be taken over by surprise.

Meanwhile, Google has suffered multiple quarterly revenue growth slowdowns after almost two decades of consistent and rapid expansion. Since last year, fear of a looming recession has seen advertisers wreak havoc on their online marketing budgets at Google, Facebook and others. As per Google, paid search advertising conversion rates have declined across most industries this year.

Beyond search, email and spreadsheets, Google wants to use its generative AI offerings to drive revenue and improve margins, according to the documents. The AI-powered customer support strategy could potentially work across more than 100 Google products, including the Google Play Store, Gmail, Android Search and Maps, the documents show.

Automated support chatbots can provide specific answers in simple, clear sentences and allow the inquiring customer to ask additional questions before suggesting the most appropriate ad plan.

A Google spokesperson declined to comment.

Google recently offered Google Duet and Conversational assistance, which allows people 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.

According to the documents, Google is also working on its own in-house Stable Diffusion-like product for rendering images. Similar to OpenAI’s DALL-E technology, Stable Diffusion can quickly display images in different styles with text-based direction from the user.

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

On May 23, Google will present new technologies for advertisers at its annual event. Google Marketing Live. The company didn’t give specifics about what it will announce, but it’s clear that artificial intelligence will be a central theme.

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

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