Google developing options to allow AI opt-out in search to ease UK concerns

* Google developing AI opt-out option amid UK competition scrutiny

* Changes aim ​to boost ⁠user choice, ease publisher concerns (Updates to add ​NMA comments in paragraphs 5-6)

LONDON, March 18 (Reuters) - Google said it was developing new search controls to let websites specifically opt out ​of ‌its generative AI features, as the U.S. tech giant sought to address the British competition regulator's concerns about its dominance ⁠in search services.

The company also proposed in a statement ⁠on Wednesday "a less intrusive" switch in a ​user's device settings to make it easier to change the default search engine, rather than frequent pop-ups, which it said would annoy users.

Britain's Competition and Markets Authority in October designated Google as having "strategic market status" in ​search services, meaning ‌the watchdog could intervene to ensure effective competition in the sector. It subsequently started a consultation on the matter with all concerned parties.

Google, which accounts for more than 90% of UK search queries, uses content harvested by its search crawler to build its AI Overviews and AI mode, as well ​as standalone products like its Gemini AI assistant. In its response to the CMA consultation, the News Media Association - ‌a body representing UK national and local news media - said there was a need to strengthen complaints handling and requirements around fair ranking.

"Publishers need ‌confidence that opting out of AI uses will not translate into reduced prominence in general search through knock-on effects," it said in a statement published on the CMA's website on Wednesday.

'DISPROPORTIONATE CONSEQUENCES' FOR USERS?

In January, ​the UK regulator outlined measures to boost choices for businesses and consumers, including allowing publishers to opt out of having their ‌content used in AI Overviews or to train standalone AI models.

It also wanted to ensure that the ranking of search results was fair and transparent, and make it easier for people to choose other search ⁠engines.

News websites ⁠and other publishers have seen click-through rates plummet as a result of ‌users relying on overviews generated with the help of AI.

In its own response to the regulator's consultation, also published on the ​CMA's website, Google said ​some of the proposed conduct requirements would have "disproportionate and detrimental consequences" for users, ‌publishers and businesses, and its "ability to innovate and invest in the UK".

Google said it would continue to work constructively with the CMA to find "practical solutions that benefit users, publishers, and businesses across the UK". (Reporting by Muvija M; Editing by Paul Sandle, Bernadette Baum and Emelia Sithole-Matarise)

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