In response to Microsoft’s AI search challenge, Google has started rolling out its own solution.

According to Reuters, On Wednesday, Alphabet Inc.’s (GOOGL.O) Google started revealing further artificial intelligence (AI) features in its products in response to Microsoft Corp.’s (MSFT.O) recent rivalry, which has jeopardised its leadership position in the over $300 billion search advertising industry.

Google’s internal project code-named “Magi” aimed to inject the company’s eponymous engine with generative artificial intelligence, or AI that can provide natural-sounding responses to user queries and create original material from existing data.

The most eyes will be on the initiative when Google officials speak at its annual conference I/O in Mountain View, California, not far from the company’s headquarters. MAGNA estimates the worldwide market for search advertising to reach $286 billion this year, and the outcome of this competition might drastically affect how people obtain global information.

After taking the stage, Alphabet CEO Sundar Pichai remarked, “We are reimagining all of our core products, including search.” He revealed that Google is adding generative AI to its search results.

For years the top gateway to the internet, Google has found its position in jeopardy because competitors started utilising generative AI as an alternative approach to deliver material from the web.

Industry watchers branded Google a disruptor after the release of ChatGPT, a chatbot developed by OpenAI with backing from Microsoft. After that, Microsoft released an enhanced version of its search engine Bing, complete with a conversational bot that can provide information where none previously existed online, such as recommendations for the best car seat for a certain kind of vehicle.

Microsoft said last month that Bing now has more than 100 million daily active users in the United States, although this number pales in comparison to the billions of queries conducted monthly on Google.

Competitors have grabbed Google’s research advances from previous years and ran with them, surpassing the company that invented them. This has been both a technical and economic insult, as Microsoft estimates that for every percentage point it gains in search advertising market share, it can generate an additional $2 billion in income.

For months, Google’s teams have been working around the clock to prepare for I/O and the introduction of new technologies, such as ChatGPT rival Bard.

Pichai predicted earlier this year that Google Search will soon include generative AI to simplify difficult inquiries, as well as additional viewpoints “like blogs from people who play both piano and guitar.”

Google hopes to reassume its position as a research powerhouse. CNBC claimed that the company planned to unveil a new, more advanced AI model called PaLM 2 at a conference on Wednesday.

Media outlets have speculated that the company may also unveil updated hardware for its Pixel product range.