YouTube Believes AI Will Be Its Next Major Breakthrough

Early on, Google recognized the potential of video to enhance its search business, leading to the launch of Google Video in 2005. However, the platform focused on securing second-rate content from the entertainment industry and imposed stringent upload restrictions, resulting in its failure. In contrast, a small startup operating above a pizzeria in San Mateo, California, was thriving by allowing users to upload their quirky videos without much concern for copyright issues. In 2006, Google acquired this year-old company, knowing it could address intellectual property matters later (which it did). The $1.65 billion price tag for YouTube was significantly above its valuation but proved to be one of the best deals ever, as YouTube has since become arguably the world’s most successful video platform. It leads the industry in music and podcasting, with more than half of its viewing time occurring on television screens, and has disbursed over $100 billion to creators since 2021. MoffettNathanson analysts estimate that if YouTube were a separate entity, its worth could reach $550 billion.

Now, the platform is poised for what may be its biggest transformation, adopting a new paradigm that could redefine its very nature. This change involves embracing AI. Given that YouTube is still a wholly owned subsidiary of AI-driven Google, it’s no surprise that its anniversary announcements this week introduced AI features to help creators enhance or produce videos. Google Deepmind’s Veo 3 technology was readily available for YouTube’s use. Ready or not, prompts may soon replace traditional video cameras, necessitating a reevaluation of YouTube’s core strength: authenticity.

YouTube’s Big Bang

I considered this shift during my recent interview with YouTube CEO Neal Mohan at the company’s San Bruno, California, headquarters. Mohan stepped into the CEO role in 2023 after Susan Wojcicki resigned due to terminal illness. We began by discussing the company’s history. Mohan noted that his connection to YouTube started even before he joined Google in 2008, following the merger of his advertisement company DoubleClick with Google. He emphasized how the founders of YouTube realized something fundamental: “It wasn’t just that people wanted to share short snippets of their lives without a gatekeeper. It was that people were interested in watching them. That was the pivotal moment. Our mission is to give everyone a voice and share their world.”

Some critics argue that both the public and YouTube itself could benefit from a separation from Google. Imagine the innovations the world’s largest video platform could achieve if it were fully independent. However, Mohan, a self-proclaimed Google loyalist, disagrees. “I don’t believe YouTube would be where it is today without being part of Google,” he asserts. He notes that being under a large corporation enables YouTube to invest in long-term projects like streaming and podcasting. When questioned about potential additional innovations in an independent setting, he reminds me that YouTube has already proven its ability to innovate, challenging traditional media in the realm of live sports while resisting competition focused on the creator economy.

YouTube boasts a breadth of content that platforms like TikTok and Reels can only aspire to, offering everything from 15-second shorts to traditional 15-minute videos, 15-hour live streams, and much more,” Mohan proudly mentions.

Additionally, YouTube is leveraging Google’s AI technology. This week’s announcements included fun features like embedding users or friends into videos showcasing remarkable acrobatics, as well as allowing podcasters to create instant television shows from audio discussions, with AI generating visuals that align with their conversation. Mohan explains that AI represents the latest evolution of YouTube’s mission. “When YouTube launched 20 years ago, it was about empowering more voices through technology,” he states. “With AI, we uphold that same principle—how do we leverage technology to democratize content creation?”