Google will use the new AI models for ads and to help creators on YouTube

CNBC has learned that Google’s efforts to quickly add new AI technology to its core products are making their way into the realm of advertising.

The company has given the green light to plans to use generative artificial intelligence, fueled by large language models (LLMs), to automate advertisements and ad-supported consumer services, according to internal documents.

Last week, Google unveiled PaLM 2, its newest and most powerful LLM, trained on reams of text data that can come up with human-like responses to questions and commands. Documents show that certain groups within Google are now planning to use tools powered by PaLM 2 to allow advertisers to create their own media assets and suggest videos to YouTube creators to create.

Google also tests PaLM 2 for young YouTube content for things like titles and descriptions. For content creators, the company has been using technology to experiment with the idea of ​​presenting five video ideas based on seemingly relevant topics.

With the AI ​​chatbot craze racing rapidly through the tech industry and capturing the magic of Wall Street, Google and its peers, including Microsoft, Meta and Amazon, are scrambling to include their most advanced models in as many products as possible. The urgency has been particularly acute at Google since the public launch late last year of Microsoft-backed OpenAI’s ChatGPT, sparking concern that the future of Internet search is suddenly within reach.

Meanwhile, Google has been mired in a multi-quarter stretch of muted revenue growth after nearly two decades of continuous and rapid expansion. With fears of a recession mounting since last year, advertisers have been reeling from their online marketing budgets, wreaking havoc on Google, Facebook and others. For Google, paid search advertising conversion rates have fallen this year across most industries.

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

Automated support chatbots can provide specific answers through simple, clear sentences and allow follow-up questions to be asked before suggesting an advertising plan that best suits the inquiring customer.

A Google spokesperson declined to comment.

Google recently offered Google Duet and chat assistance, allowing people to get answers to cloud-related questions with simple natural language, such as how to use certain cloud services or functions, or to get detailed implementation plans for their projects.

Google is also working on its own in-house stable diffusion-like product for creating images, according to the documentation. Stable Diffusion technology, similar to OpenAI’s DALL-E technology, can quickly display images in various styles with text-based guidance from the user.

Google’s plan to push its latest AI models into advertising isn’t surprising. Last week, Meta, Facebook’s parent company, unveiled AI Sandbox, a “testing ground” for advertisers to try out its new AI-powered generative 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 introduce new technologies to advertisers at its annual event, Google Live Marketing. The company hasn’t given details on what it will announce, but it’s clear that artificial intelligence will be a central theme.

“You’ll discover how AI-powered advertising solutions can help amplify your marketing expertise and drive powerful business results in today’s changing economy,” says the event website.

He watches: Artificial intelligence takes center stage at Google I/O