In an interview with Nikkei Asia , Scott Beaumont, President of the Asia- Pacific region for the American tech giant, affirmed that the company is targeting the region with the explosion of generative AI.
A new search experience.
Google has launched a beta version of a technology called "generated search experience" (SGE), which uses AI generation to enhance the quality of internet search services.
Japan and India are two of the first markets to embrace this new technology, following the United States. A company representative explained this by citing "extremely high levels of interest from these two countries" compared to other global markets. Additionally, South Korea, another Asian country, also ranks highly in terms of demand.
At 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, representing 29% of global revenue.
Google, which started as a search engine provider, now operates approximately six services used by over 2 billion people worldwide . The number of devices running the Android operating system developed by the company has also exceeded 3 billion.
Beaumont emphasized that "more than half of the world's internet users are concentrated in the APAC region," and coupled with the economic growth of countries in the region, the increasing digital penetration creates enormous potential for development.
With these factors in mind, Google aims to expand all its revenue streams in the Asian market, including cloud computing services, hardware sales such as smartphones, and online advertising.
The path to transformation
Google executives pointed out that AI generation could serve Asia as a “weapon” or “pocket-sized assistant.” Demand from small and medium-sized enterprises (SMEs) for this booming technology is enormous, with expectations of significantly improved productivity.
However, regarding the mainland Chinese market, Beaumont acknowledges that no “consumer services” are being deployed there and denies the possibility of participating in the potentially lucrative AI market of the world's second-largest economy.
“We have a lot of work to do in other markets,” Beaumont said, noting that the company would need to overcome “similar hurdles” in China in the field of generative AI.
In 2010, Google stopped providing search services in mainland China to protest internet censorship and cyberattacks originating from China targeting the company.
(According to Nikkei Asia)
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