Key Takeaways
- An Apple executive testified that searches on its Safari browser recently declined for the first time, attributing the drop to users turning to AI.
- This disclosure emerged during the ongoing federal antitrust lawsuit against Google’s parent company, Alphabet.
- Apple may consider adding AI engines as alternative search options on its devices in the future.
- Google’s shares experienced a noticeable drop following the executive’s testimony.
- Google has disputed the claim, stating its search query volume continues to grow, including from Apple devices.
For some time, Google has been watching the rise of AI engines like ChatGPT with a degree of concern, and it seems those worries might be starting to materialize.
Eddy Cue, a senior vice president at Apple, recently revealed that searches on Apple’s Safari browser saw their first-ever dip in April. He suggested this change was due to people increasingly using artificial intelligence for answers.
Cue shared this information while testifying in the federal antitrust case against Google’s parent company, Alphabet. This is noteworthy because Apple receives substantial payments, reportedly over $20 billion annually, from Google to keep it as the default search engine on Apple devices.
He also indicated that Apple might integrate AI engines from companies like OpenAI, Perplexity AI Inc., and Anthropic PBC as search alternatives within Safari down the line, as reported by Bloomberg.
Cue expressed his belief that these AI search providers could eventually replace traditional search engines like Google, though he noted they still need improvement before becoming default options.
This testimony helps explain why investors are pouring significant funds into AI companies. They’re betting these new technologies could chip away at Google’s dominant position in the search market, a key factor in Google’s $2 trillion valuation.
This competitive pressure is also what’s driving Google to rapidly transform itself into an AI-focused company, integrating its Gemini AI into conventional search queries.
Despite some early criticisms of its AI search features, Google has maintained that users are finding the AI-enhanced results helpful. On a recent earnings call, Google CEO Sundar Pichai said their AI Overviews had actually increased search volume.
However, Cue’s statements from the trial suggest Google’s efforts might not be enough to fully shield its market share from the AI disruption. Following his testimony, Google’s shares fell more than 7%.
Late Wednesday, Google issued a statement challenging Cue’s assertion. The company said it continues to see “overall query growth in search,” including an increase in total queries originating from Apple’s devices and platforms, according to Business Insider.
