The rise of AI challenges Google's search empire

The rise of conversational AI and chatbots is posing a major challenge to Google’s search dominance. Apple’s consideration of replacing Google with other AI tools on its Safari browser signals a dramatic shift to a new era of search.

Since ChatGPT went viral in late 2022, Google executives have been racing to stem the decline of its core search service. Now, Apple Inc., one of Google’s most important search partners, has confirmed that the search giant’s efforts have been ineffective. Apple is “actively considering” improving its Safari web browser on iPhones and other devices. Instead of defaulting to Google, Apple may surface other AI tools from companies like OpenAI, Perplexity AI Inc., and Anthropic PBC.

The shocking announcement sent Alphabet’s stock down more than 8% at one point last week, and understandably so. Not only does it signal the end of a lucrative partnership between Google and Apple that brings in $20 billion a year, but it also shows that users are moving away from keyword searches in favor of conversational AI tools and chatbots.

Apple’s senior vice president of services, Eddy Cue, revealed the information during a hearing in the Justice Department’s lawsuit against Alphabet last week. He added that Google searches on Safari dropped for the first time in April, which he attributed to the increased use of AI tools.

A year ago, Google began rolling out AI Overviews, which offers a smarter, more intuitive search experience. While the feature has had its share of flaws, Alphabet CEO Sundar Pichai assured investors in April that AI Overviews is “performing really well, with over 1.5 billion monthly users.”

AI Overviews is a feature that helps users search more easily. This feature provides concise but informative summaries of search topics, leveraging the power of AI to help users explore information more efficiently, in detail, and comprehensively.

Research so far also shows that users are using chatbots like ChatGPT, Anthropic's Claude, or Perplexity to supplement traditional search, not to replace it entirely.

However, Mr. Cue's above revelation about the possibility of replacing Google shows the opposite, and that Google's efforts to integrate AI into its search engine are not enough. He said that although Apple's agreement with Google brings in about 15% to 20% of its service revenue, Apple still has to consider the possibility of replacing Google.

All of this raises questions about the future decline of search — long considered Google's "money machine" — and how long the company can survive competition from emerging AI companies.

Google’s position in the search industry has always seemed so solid, with a 90% global market share. In addition, using Google’s search engine has become so ingrained in users’ habits that the company’s name has become a verb meaning “to search.”

Furthermore, Google also dominates the high-margin types of searches that users seem likely to continue to use. About half of Google searches are informational, but the other half is where the real gold is: searches that navigate to other websites, or commercial and transactional searches, such as when users type in “Nike running shoes” or “buy cryptocurrency online.” These searches are much more valuable and are not something users can get from AI chatbots, at least not yet.

After moving aggressively into web search, several emerging AI companies are taking the next step into e-commerce. OpenAI, which has more than 500 million active users, recently began offering product recommendations with purchase links, and Perplexity has also added shopping features.

While Google may argue that it dominates the global search market because of user trust, another reason is Google's anti-competitive practices, from favoring its own services like Google Shopping in search results to paying a $20 billion fee to Apple — which is also the reason for the above-mentioned lawsuit by the US Department of Justice.

On the other hand, being on the “throne” for too long has also made Google complacent, and led to Google search results being flooded with ads and sponsored links. For many, AI tools have become the obvious alternative simply because the quality of Google search has declined.

Apple’s possible breakup with Google signals the end of an era, but it could also usher in a healthier market where more competitors will try to provide users with better, more personalized answers. This would be a huge blow to Google, but good news for its competitors and billions of users around the world./.

(Vietnam+)

Source: https://www.vietnamplus.vn/su-troi-day-cua-ai-thach-thuc-de-che-tim-kiem-cua-google-post1038261.vnp