LUCAMEGoogle's AI Mode — the version of Search that generates conversational answers rather than showing a list of links — is proving expensive to run and hard to monetise. The company has spent around $51 billion on infrastructure and is still having to rent additional computing capacity from outside its own network to keep up with demand.
What this means for your business
For UK businesses that rely on Google Ads or depend on organic search traffic, this is worth watching. If Google can't make AI search profitable through its current ad model, it'll have to change how ads appear alongside AI-generated answers, which could affect your visibility and your cost-per-click. Nothing needs doing right now, but if you're spending money on Google Ads or SEO, keep an eye on how your traffic and conversion figures move over the next few months.