The smartphone boom upended Google s advertising profit engine and it took years for the Internet giant to adjust to the new mobile world.
What is less clear is how Google will make money from this.Google s main AdWords search advertising business generates more than $40 billion a year in highly profitable revenue from text-based ads that pop up alongside search results shown on personal computer and smartphone screens.
When results are delivered by the company s AI-powered assistant, the existing ad business won t work.
They are dead," said Carlos Kirjner, an analyst at Sanford C. Bernstein.
Despite decades of research and a larger focus in the last four years, the company is still grappling with "big unsolved" problems of computer science, like understanding language and dialog, Giannandrea said.
As the very concept of the "device" fades away, the company must find new ways to make money from a business that is becoming increasingly invisible.