Google expands AI search summaries to new countries

Welcome back to a new edition of AI Odyssey!

TL;DR

• 1: Google is expanding its AI search summaries to six new countries after a rough start in the U.S. The company is improving accuracy and adding more links as it faces growing competition and legal challenges.

• 2: AI is struggling to win over consumers, despite massive investment. A study shows that marketing products as "AI-powered" can reduce purchase intent, especially for high-risk items. Successful ads focus on AI as a tool that enhances, not replaces, human creativity. The takeaway: emphasize the benefits, not just the AI, to win consumer trust.

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1: Google expands AI search summaries to new countries

Google is taking its AI-powered search summaries global, expanding to six new countries just a couple of months after a rocky start in the U.S.

The expansion: Google’s AI Overviews, which provide quick answers at the top of search results, are now rolling out to users in Brazil, India, Indonesia, Japan, Mexico, and Britain. These summaries will be available in local languages like Portuguese and Hindi.

The rocky start: After launching in the U.S. earlier this year, Google’s AI Overviews faced backlash for providing inaccurate information—like a pizza recipe that suggested using glue. Google quickly made updates, adding restrictions on what queries trigger AI answers and limiting sources like Reddit.

Improvements on the horizon: Google claims the quality of its AI-generated answers is improving, backed by internal data showing higher user satisfaction. They’re also adding more hyperlinks, with websites displayed alongside the AI answers and even testing links within the text itself to drive traffic to relevant sites.

Why it matters: These updates come as Google faces increasing pressure, both from legal challenges like a U.S. judge ruling it has an illegal search monopoly, and from competitors like Microsoft-backed OpenAI. Google’s push to improve AI answers is part of its strategy to stay ahead in the evolving search landscape.

2: The AI dilemma: consumers aren't buying it, and advertisers are feeling the heat

AI is everywhere—except in the hearts of consumers. Despite enterprises pouring over $40 billion into generative AI this year, the tech is struggling to win over the public. A new study from Washington State University found that using "AI" in product marketing actually dampens purchase intent, especially for high-risk products.

The trust issue: Consumers are wary of AI, with 52% expressing more concern than excitement about the technology, according to a Pew study. This distrust was on full display when Google faced backlash for its "Dear Sydney" ad during the Olympics. Intended to showcase AI's ability to enhance human creativity, the ad was pulled after being criticized as tone-deaf.

The advertising catch-22: Marketers are in a bind. On one hand, they can't ignore AI—companies are spending millions on AI marketing, with ad spending jumping from $5.6 million in early 2023 to $107 million in the first half of 2024. On the other hand, overemphasizing AI in ads is turning consumers off. High-profile failures like Google's Gemini ad and Toys "R" Us’ AI-generated spot have shown that the public isn’t ready to embrace AI without reservation.

What works: Experts say the most successful AI ads focus on how the technology enhances the human experience rather than replacing it. System1, a research company that rates TV ads, found that AI-focused ads perform best when they tell a human-led story. For example, Adobe’s ad featuring a girl using AI to create a birthday card scored high with viewers when it became clear the tech was supporting her creativity, not overshadowing it.

The way forward: Advertisers need to shift their focus. AI should be seen as a tool, not a selling point. As Josh Campo, CEO of Razorfish, puts it: "You can talk about AI, but don't overdo it. It's not a strategy, it's a tool." Instead of trumpeting AI, marketers should emphasize the benefits it brings to the customer experience.

The bottom line: AI may be the future, but it’s not a silver bullet for marketing. Consumers are skeptical, and brands need to tread carefully. The key to winning over the public? Focus on how AI can enhance, not replace, human creativity and experiences.

That’s a wrap! See you again for a fresh dose of AI Odyssey soon. 😎