One of the big worries for Google investors was the cost of running AI to show within its search results. The AI overviews, now AI answers are costly to run. But as expected, Google was able to reduce the cost to generate these AI Answers.

The Information wrote that Google was able to reduce the cost of these AI generated responses in search by 80%. Google’s Sundar Pichai mentioned this as well in the earnings call.

Google said on the call, “For example, since introducing SGE about a year ago, machine costs associated with SGE responses have decreased 80% from when first introduced in Labs, driven by hardware, engineering, and technical breakthroughs.”

The Information wrote:

Glenn Gabe summed this up nicely:

I was never worried about Google reducing its costs to generate these AI answers.

My bigger concern is the lack of clicks these AI Answers may generate both organically and for paid search.

Forum discussion at X.