Google, a subsidiary of Alphabet (GOOGL, Financial), has introduced "AI Mode" on its search page, offering chatbot-style responses to queries instead of traditional blue links. This move addresses the threat posed by AI startups like Perplexity and OpenAI to Google's iconic search engine and primary revenue source.
Google's CEO, Sundar Pichai, described the feature as a complete reimagining of search with advanced reasoning capabilities, marking a new phase in AI platform evolution. The AI-driven search method is fundamentally changing how users find information, potentially impacting Google's market share and advertising revenue as users may shift to AI-powered alternatives like ChatGPT.
Earlier reports indicated that Apple's consideration of integrating AI options like ChatGPT or Perplexity into Safari could further challenge Google, affecting Alphabet's stock performance.
In response, Google is enhancing its AI capabilities, including the Gemini chatbot, and integrating AI into various products. The "AI Mode" feature has been tested for months and is now available for U.S. users, supported by Gemini. Google is also exploring advertising integration within AI Mode results to maintain its revenue stream.
