[Source: Reuters]

Alphabet Inc’s (GOOGL.O) Google is rolling out more artificial intelligence for its core search product, hoping to create some of the same consumer excitement generated by Microsoft Corp’s (MSFT.O) update to rival search engine Bing in recent months.

At its annual I/O conference in Mountain View, California, on Wednesday, Google offered a new version of its namesake engine. Called the Search Generative Experience, the revamped Google can craft responses to open-ended queries while retaining its recognizable list of links to the Web.

“We are reimagining all of our core products, including search,” Sundar Pichai, Alphabet’s CEO, said after he took the stage at the event.

He said Google is integrating generative AI into search as well as products such as Gmail, which can create draft messages, and Google Photos, which can make changes to images like centering figures and coloring in empty space.

Alphabet’s shares rose 4% on Wednesday. They are up 26% so far this year, compared with the 8% rise in the S&P 500 index in the same time frame.

U.S. consumers will gain access to the Search Generative Experience in the coming weeks via a wait list, a trial phase during which Google will monitor the quality, speed and cost of search results, Vice President Cathy Edwards said in an interview.

Google’s foray into what is known as generative AI comes after the startup OpenAI introduced ChatGPT, the darling chatbot of Silicon Valley that launched a furious funding race among would-be competitors. Generative AI can, using past data, create brand new content like fully formed text, images and software code.

OpenAI, backed by billions of dollars from Microsoft and now integrated into Bing search, has become for many the default version of generative AI, helping users spin up term papers, contracts, travel itineraries, even entire novels.

For years the top portal to the internet, Google has found its own perch in question since rivals began exploiting the technology. At stake is Google’s slice of the gigantic online advertising pie that the research firm MAGNA estimated at $286 billion this year.

“AI can provide insight,” Edwards said. “But what fundamentally people want at the end of the day is to be connected to information from real people and organizations, knowing, for example, that this health information comes from the WHO,” or the World Health Organization.

Addressing how AI can spout incorrect information, Edwards said the company prioritized accuracy and citing trusted sources.

Google will also mark up images it generates with AI and make it easier for people to vet a picture’s authenticity.

“Google’s vision makes a strong case that search is evolving, not dissolving, and that Google is here to stay,” said Canaccord Genuity analyst Kingsley Crane.

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