Google advances AI updates, subscriptions as OpenAI’s ChatGPT challenges search business

To counter increasing competition from OpenAI’s ChatGPT, Google has introduced a broad range of AI-powered enhancements across its search platform and larger services. These moves represent a strategic shift towards reimagining user experience with Google’s ecosystem.

AI Mode: A Conversational Revolution in Search

Leading Google’s makeover is the launch of “AI Mode” in its search tool. This mode supports:

• Conversational, chatbot-like questions and answers
• Sophisticated questions with thoughtful, AI-provided responses
• Management of 8.5 billion daily requests more intelligently

Subscription Models: Launching AI Pro and AI Ultra

In a departure from its conventional ad-based model, Google has introduced tiered subscription plans to provide superior AI functionalities:

• AI Pro: Costs $20 a month
• AI Ultra: Priced at $250 a month
• Offers advanced tools like Gemini 2.5 Pro’s Deep Think mode and the Flow AI film-making tool

Integrating AI into More Services

Outside of search, Google is integrating AI into its family of apps. Prominent additions include:

• Gemini Live: An AI assistant that combines camera, voice, and web information to execute tasks in real-time.
• Personalized Smart Replies: Gmail provides responses mimicking users’ writing styles.
• AI-Powered Creative Tools: Introduction of Jules for AI-aided coding and Imagen 4 for highly detailed image creation.
• Mixed Reality Projects: Demonstration of Android XR smart glasses with collaboration by Gentle Monster and Warby Parker.

Competitive Landscape: OpenAI’s Strategic Moves

Meanwhile, OpenAI is upgrading the abilities of ChatGPT, adding real-time search features and shopping capabilities that enable consumers to search and compare products using natural dialogue. These updates make ChatGPT a serious contender in the search space, threatening Google’s years-long reign.

Market Reception and Future Outlook

In spite of these advancements, Alphabet, Google’s parent company, saw its stock value fall 1.5% on the announcement day, adding to a 13% loss year to date in 2025. The company remains positive, pointing out that competition fueled by AI can mitigate antitrust issues and reiterating its dedication to innovation in the future AI revolution.