Google Search AI Impact: This Apple executive rocked the alphabet this week; Here’s what happened and the real story behind it

AI chatbot shakes Google search? Apple Exec’s testimony rattled letters investor – Google’s parent company Alphabet took a hit this week after surprising testimony from Apple’s senior vice president Eddy Cue. In an ongoing antitrust trial against Alphabet, CUE revealed that Google searches through Apple’s Safari browser have gradually declined for the first time in more than 20 years. He pointed his finger at the AI-powered tool because the main reason users stay away from traditional search methods. This comment made the shock wave launch in the market. In intraday trading, Alphabet shares fell as much as 9% before recovering slightly. Even after the rebound, the stock still fell about 6% compared to where Cue had before his speech.

Will Google Search really lose AI chatbots?

Google Search has long been the undisputed leader in how people find information online. It still brings 55% Alphabet’s total revenue, although the company did not disclose the exact profit number.
But now, new players (especially AI chatbots like Chatgpt) are quietly diverting user behavior. Cue’s statement highlights the shift, which raises real concerns among investors who worry that AI search tools might be eating under Google’s dominance.

The data adds to this fear.

How much search traffic has Google actually lost?

Although Apple’s Eddy Cue suggests that safari-based search traffic has dropped, Google replied that it clarified that overall search queries are still growing. “We continue to see overall query growth in searches,” the company said in a statement, adding All Queries on Apple devices are also increasing. This shows that users are still turning to Google, just not always through Safari. Instead, they may be using Google App, Google Chrome and even voice-based searches and Google lenses. These newer search forms are not well supported at safaris and may drive this shift.

Are AI chatbots stealing search market share like Chatgpt and Gemini?

Independent data points show that since Chatgpt launched in November 2022, Google’s search engine market share has eroded little but stable. According to StatCounter, Google’s global market share has dropped from 93% to below 90% – it has fallen 90% first since 2015.

Meanwhile, Microsoft’s Bing, which now uses OpenAI models, has risen slightly, from 3% to 3.9%.

SamelyWeb added more context, pointing out that Google’s search share fell by 2% year-on-year. Their report also shows that all traditional search engines are seeing a decline in traffic, indicating a broader path towards AI-based information.

Still, in 2024, Chatgpt captured only 1% of the total traffic compared to Google, Per Sparktoro and Datos. Among AI chatbots, Chatgpt leads with 80% of market share, followed by DeepSeek (6.5%), Google’s AI tools (5.6%), X (2.6%) (2.6%) and Confusion (1.5%).

Do Gen Z and young users put Google on Tiktok and Instagram?

Another emerging trend is where people are looking for advice. A September 2024 Bernstein research report found that nearly half of Gen Z prefer to use Tiktok or Instagram via Google when searching for things like travel attractions, restaurants, and products.

This behavioral shift, especially among younger users, suggests that Google’s search search is no longer common. Social media platforms have become the first choice for certain types of searches – fuller separates users’ attention.

Will AI affect Google’s advertising revenue and growth?

Despite a decline in search share, Google search revenue grew 7% in the first quarter of 2025. But this is higher than the growth rate in 2024. The “Search & Other” paid click growth for letters slowed by 2% compared to 5% in 2024.

Alphabet Chief Business Officer Philipp Schindler claimed on the revenue call that monetization remains stable. But it is worth noting that he avoids solving problems with click-through rate (CTR) after the AI ​​overview is released, which provides quick answers rather than traditional link lists.

According to JPMorgan analyst Doug Anmuth, these AI overviews may be behind the slower paid click-through rate, as they reduce ad space and give more natural answers. Two independent marketing firm studies found that AI-overviewed CTR fell by 35% compared to regular Google search results.

In April 2025, Google executive Sissie Hsiao admitted in an antitrust trial that Chatgpt reduced certain search categories such as math help and homework. These are not big ad drivers, but the bigger concern is what will happen next. Google’s advertising chief Vidhya Srinivasan reportedly warned in October 2024 that Generative AI will eventually suck search revenue and push Ads to include ads in Gemini Chatbot’s answer.

Is the alphabet struggling or just facing long-term challenges?

Despite these changes, the letters are not immediately dangerous. It remains a global leader in search, with a broad revenue base – thanks to YouTube, Cloud Services and other products. But the company is clearly aware that it faces what business experts call “the dilemma of innovators.”

AI is changing the way people seek information. As Eddy Cue’s comments suggest, this transition happens faster than many people expect. Google now has to move quickly to adapt – before more users and dollars, move elsewhere.

FAQ:

Q1. Does AI replace Google search?
AI chatbots like Chatgpt are slowly changing how people search, especially for quick answers.

Q2. Why is Google search volume down Safari?
Apple’s Eddy Cue said users now prefer AI tools, rather than Safari, to find information online.