Apple’s AI Search in Safari Threatens Google’s Dominance
Apple is reportedly planning to integrate AI-powered search features into its Safari browser, a shift that could significantly disrupt Google’s dominant position in the online search market. This initiative comes at a time when user behavior is evolving rapidly due to the growing popularity of generative AI tools. If Apple follows through, it could threaten Google’s lucrative advertising revenue and its long-standing partnership with Apple.
A Turning Point in the Search Engine Landscape
According to sources close to the matter, Apple executive Eddy Cue recently testified in a U.S. antitrust case that Safari searches had declined for the first time in recent months. Cue attributed this drop to users increasingly shifting toward AI-powered tools. Consequently, Apple is “actively looking at” transforming Safari to include alternative AI search providers like OpenAI and Perplexity AI.
The announcement led to an immediate market response. Shares of Google’s parent company Alphabet dropped 7.3%, erasing around $150 billion from its valuation. Apple’s stock also declined slightly, by 1.1%. Analysts suggest that the default search deal between Google and Apple, worth roughly $20 billion annually, is at serious risk. Losing that exclusive placement on Safari could significantly affect Google’s share of the search ad market.
While Google insists that search volumes from Apple devices are still growing, it acknowledges increasing use of its voice and visual search features. However, Apple’s intentions indicate a broader industry shift, potentially ending Google’s near-monopoly, which covers approximately 90% of the global search engine market.
Competitive Responses and Industry Outlook
In response, Google is ramping up its AI efforts. Earlier this year, it introduced “AI mode” and expanded AI Overviews to over 100 countries. These summaries appear above traditional search results and now include ads, helping to sustain Google’s ad revenue.
Moreover, Google aims to incorporate its Gemini AI into new Apple devices, as revealed by CEO Sundar Pichai during a recent antitrust trial. Despite these efforts, analysts warn that advertisers might begin reallocating their budgets if viable alternatives to Google become mainstream.
Apple’s strategy signals a pivotal shift in user expectations and technology trends. As more consumers explore generative AI for search, traditional search engines must adapt or risk losing relevance. This evolving landscape may offer more competition, ultimately benefiting users and advertisers alike.
