An Apple exec suggested AI chatbots were eroding Google’s search business, sending Alphabet shares plummeting. The truth is more complicated.

The CEO of Apple Eddy Cue said earlier this week when he witnessed during the American monopoly issue against Alphabet, and said that the volume of Google search operations on Apple Safari browser had decreased for the first time in more than two decades. Breasts to decrease in size to people who use new tools that AI moved to find information.

Bombshell’s comments led to a decrease in the ALPHABET share to 9 % in trading during the day, although they later stumbled on some of these losses and are currently 6 % less than Cue Certificate.

Investors were concerned that AI Chatbots will replace Google Search at the end, which represents 55 % of Alphabet’s overall revenue, and it is believed that it also represents a much larger percentage of the company’s profits. (We do not know exactly how much, because the alphabet does not separate its profits through the same parts in which it reports on revenues.) But trying to get rid of artificial intelligence competition exactly that affect Google, and any competitors may gain at the expense of Google, is difficult.

There is more for the Google movement of Apple more than just Safari

In response to Cue Certificate, Google issued a statement, without saying that directly, confirmed what Cue said about Safari, while also indicating the abuse of data interpretation. The company said: “We still see a general growth in research in research. This includes an increase in the total quotes coming from Apple devices and their platforms.”

In other words, people search more, not less, but they do not necessarily use the Apple Safari browser to do so. Google also said that she was witnessing the increasing use of new search patterns, such as searching for images using Google lens or sound -based searches. These features are also not supported in Safari, which may mean that people turn into Google’s Chrome or Google app instead.

Alphabet has also provided a number of comments about its increasing use of the Aerobic Organization to provide “Amnesty International Overview” – answers to search inquiries instead of just a list of links – and their effect on research. For example, the alphabet for more than a year has insisted that an overview of Amnesty International increases the use of research. Independent data from web, Sarktoro and Datos analyzes confirm this, which indicates that the total number of Google search operations has grown more than 20 % on an annual basis in 2024, the first full year of artificial intelligence.

Alphabet also showed a statement in March, based on what he said is the company’s internal data from January 2025, that an artificial intelligence overview led to “commercial searches”, where people were looking to buy a specific product or service.

But Google Executive Sissie Hsiao, who supervised the start of the Google Gemini Chatbot product, witnessed in April in the Google Antitrust experience that since the appearance of Chatgpt, Google has seen a decrease in searching for “mathematics and homework”. HSIAO said these searches usually do not provide a lot of advertising revenues, but also said Vidhya Srinivasan, the executive officer of Google ads, believes that artificial intelligence will ultimately work on search revenues.

The size of the search in general, insists on the alphabet. But Google’s market share is still shrinking.

Although the total search level may be raised, Google may have grabbed a little of this largest pie. The Statcount showed data from the STATCORTER web decrease in the global market share of Google Search since it appeared for the first time in Openai’s Chatgpt in late November 2022. Google’s share has moved from about 93 % of the traditional search engine traffic to less than 90 % during that period. The Google decrease is less than 90 %, which occurred in the last quarter of 2024, is the first time that the company has decreased to a minimum since 2015.

The Statounter numbers do not directly evaluate the traffic engines of traditional search engines against the use of artificial intelligence tools such as ChatGPT. However, it can tell us that during the same period, Microsoft’s Bing – which includes Bing Chatbot in the company, which is supported by the Openai GPT models – a small increase in the market share, from about 3 % to 3.9 %, according to Statcount.

The data released earlier this week appears from a similar company, another company to track a web site, a 2 % decrease in the market share of Google on an annual basis. Data similar to all the traditional search engines that lose traffic appear in the past 12 months, a possible indication that people are more transforming into artificial intelligence tools to obtain answers. (However, SparkToro and Datos numbers indicate that ChatGPT saw only about 1 % of the total traffic volume that Google Search saw in 2024.)

The latest similar data from these artificial intelligence tools says, ChatGPT has the largest share in the market, with about 80 % of the total use of AI Chatbot, while Deepseek from AI Chatbot has 6.5 %, AI tools from Google has 5.6 %, GROK 2.6 % of X.com, about 1.5 %.

Young people are also increasingly looking for social media for product recommendations, travel and restaurant, instead of using Google. Bernstein’s research report issued by September 2024 was martyred two separate polls that it is likely that about half of the consumers of Gen Z are used as platforms like Tiktok or Instagram instead of Google because they are the basic search tool.

Revenue increased, but growth rates slow

How quickly these trends are in Google’s revenues are unclear. In the first quarter, Google’s search revenues grew by 7 % – which were about half of the expansion rate of these revenues during 2024. But it is still growing.

Philip Shendler, Senior Vice president and Emastle in Business officials, told the company’s first company’s profit calls that Alphabet had witnessed a “liquefy almost at the same rate” since the launch of an artificial intelligence overview. But he also refused to answer questions about clicking rates to appear since the introduction of artificial intelligence capsule answers. The next morning, the Alphabet’s 10Q SEC file revealed that the growth of “Google Search and others” clicks have slowed to 2 %, decreasing from a 5 % growth rate throughout 2024.

“Amnesty International is a wage clicks growth as wage is possible that it is likely to have a less advertising load and the most relevant natural research results.” Two recent studies of marketing companies that help companies increase their presence in the search engine results in significant declines in clicks besides-reaching 35 %-a general glimpse of artificial intelligence compared to traditional research.

According to the HSIO Anti -monopoly certificate, the Google Ad Srinivasan leader was pressing to include ADS in Gemini Ai Chatbot answers as soon as possible to compensate for artificial intelligence in the end of Google, the biological profit engine. It was quoted as saying at a meeting at a meeting in October 2024, according to the observations of this meeting, which was presented in the trial: “Writing on the wall.”

The alphabet is not in immediate danger. He is still far from the dominant player in the search and has a diverse revenue base, with YouTube and his cloud work, for dependence as well. The search giant still has enough time to know how to escape from an innovative dilemma – but Cue certificate is a reminder that the watch beats.

This story was originally shown on Fortune.com

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2025-05-09 14:24:00