AI search engines
This article delves into the potential of AI search engines to disrupt Google’s dominance in the search market, exploring regulatory actions, new AI-powered solutions, and Google’s response.
Google’s Dominance in Search Market
In the world of technology, few companies have achieved the level of dominance that Google has in the search market. The phrase “just Google it” has become synonymous with searching for information online. However, recent developments suggest that Google’s reign might be under threat. New AI-powered search engines like SearchGPT and Perplexity are emerging, and regulatory actions are challenging Google’s monopoly. Could these changes be enough to disrupt Google’s stronghold on search and search advertising?
Google has been the undisputed king of search for over two decades. With over 90% of the search market, Google’s success is not just due to its product but also the strategic partnerships it has formed over the years. Google Search is the default search engine on most browsers, including Safari. However, both these aspects are now under threat.
The Rise of AI Search Engines
“The regulatory actions will definitely impact those partnerships that Google has created and will shrink the market share,” says Roshat Adnani, managing director APAC at M&C Saatchi Performance. “However, a significant impact might happen because of the challenges faced at the product level. Open AI has changed consumer behaviour through ChatGPT, and SearchGPT might also have the potential to disrupt consumers’ search behaviour. There will be more AI-powered solutions that will continue to threaten Google.”
Although Google was found guilty of antitrust violations, the full implications of this landmark decision are yet to be declared. Google has stated that it will appeal the verdict, and it’s unclear what the enforced remedies will be. The impact will differ based on how severe the required steps are.
The Impact of AI on Google’s Dominance
“While the ruling may create some opportunities for competitors, I am not optimistic that they will develop a compelling enough alternative to significantly shift user preferences,” says Andrew Desmond, senior paid media director at Jellyfish. “Even if they do, they won’t just be competing against Google’s search product, they’ll be battling user inertia, which is a much tougher challenge. Until Google is no longer the default—whether by user choice or due to changes in contractual agreements with their various partners—they will continue to dominate.”
The Future of AI Search Engines
“Generative AI is revolutionising the search industry,” says Jim Yu, founder and executive chair of BrightEdge. “The emergence of AI-driven search engines was the first step towards opening up the search landscape to new entrants with the potential to disrupt Google’s stronghold, and now the antitrust ruling can serve as an accelerator.”
Challenges and Opportunities
Mindful of the competition in the AI search space, Google has already made moves to reinforce its position as the search leader by launching AI Overviews. An advanced search facility powered by generative AI, it combines multi-step reasoning, planning, and multimodality with Google’s best-in-class search systems. But will AI Overviews be enough for Google to maintain its market leader position and steer off the competition?
Conclusion
While both SearchGPT and Perplexity are strong contenders in the AI search category, Google still has the advantage of data, infrastructure, resources, and experience. “Google’s seamless integration across its services, like Gmail and Maps, sets a high standard for user experience and convenience that is hard to match,” adds Adnani. “Google is also actively investing in AI to improve its search capabilities. Thus, it is difficult to rule out Google.”
Google will continue to dominate search advertising in the foreseeable future, but the rise of AI search engines presents both challenges and opportunities for the industry. As new entrants gain traction, advertisers may need to diversify ad spend across different engines to reach various audience segments. Innovation in ad formats and models driven by competition is also expected to shape the future landscape of search advertising.
What do you think about the future of AI search engines? Will they be able to challenge Google’s dominance? Share your thoughts and experiences in the comments below.
