In an interview with Nikkei Asia , Scott Beaumont, Asia-Pacific President of the US tech giant, confirmed that the company is targeting the region with the boom of generative AI.

New search experience

Google has launched a beta version of a technology called “generative search experience” (SGE), which uses generative AI to improve the quality of Internet search services.

Japan and India are the only two markets that have recently received access to this new technology, after the United States. The search firm’s representative explained this by saying that “the level of interest from these two countries is extremely high” compared to other global markets. In addition, South Korea, another Asian country, is also high on the demand list.

By the end of 2022, the APAC region contributed $47 billion in revenue to Alphabet (Google's parent company), accounting for 16% of the company's total global revenue. Meanwhile, revenue in Europe, the Middle East and Africa totaled $82 billion, accounting for 29% of global revenue.

Google started as a search engine provider, now operates about 6 services used by more than 2 billion people worldwide. The number of devices running the Android operating system developed by this company has also exceeded 3 billion.

Beaumont stressed that “more than half of the world's Internet population is concentrated in the APAC region”, along with the economic growth of countries in the region, increasing digital penetration creates huge “room” for growth.

With the above factors, Google aims to expand all revenue sources in the Asian market, including cloud computing services, hardware sales such as smartphones and online advertising.

The path to transformation

Google executives have pointed out that generative AI could serve Asia as a “weapon” or “an assistant in your pocket.” There is huge demand from small and medium-sized businesses for this booming technology, with expectations of massive productivity gains.

But as for the mainland Chinese market, Beaumont admits there are “no consumer services” being deployed there and denies the possibility of participating in the potential AI market of the world’s second economy.

“We have a lot of work to do in other markets,” Beaumont said, noting that the company will need to overcome “similar obstacles” in China in the area of ​​generative AI.

In 2010, Google stopped providing search services in mainland China to protest Internet censorship and cyber attacks originating from China targeting the company.

(According to Nikkei Asia)

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