Is Google becoming more like Perplexity to compete with AI search?

Google officially launched the "AI Mode" feature, completely reshaping the search engine and directly confronting threats from AI competitors like Perplexity and ChatGPT.

On May 21, it was reported that Google is rolling out a feature called "AI Mode" on its search page, which answers search queries in a chatbot-style conversational manner, no longer displaying traditional blue links. This option has been made available to users in the United States as a label within the search page.

Sundar Pichai, CEO of Google's parent company Alphabet, stated:

"This is a complete reimagining of search, with more advanced reasoning capabilities. We are now entering a new phase of transformation for AI platforms, where decades of research are becoming a reality."

This change signifies that Google is actively responding to threats from AI startups like Perplexity and OpenAI to its iconic search engine product and its largest source of revenue.

AI Search Disrupts Traditional Models, Google’s Market Share at Risk

AI chatbots are fundamentally changing the way users search for information.

In responding to queries, OpenAI's ChatGPT and its competitors aggregate information in a conversational format. Users do not click on multiple links as frequently as they do when using Google Search.

Google once executed up to 90% of global internet searches. If users turn to AI-driven alternatives, it could lose traffic—and the advertising revenue that comes with it.

Notably, earlier this month, during a federal antitrust case against Google, an Apple executive mentioned that AI options like ChatGPT or Perplexity could be offered in the Safari browser within the next year, leading to a significant drop in Alphabet's stock price.

Google’s Counterattack Strategy, Fully Betting on AI

To stay ahead in the AI race, Google has been enhancing its own AI model and chatbot Gemini's capabilities, adding AI features to many products.

Last year, Google introduced "AI Overview" in search, a feature that uses AI to summarize traditional search results, typically displayed at the top of the results page. According to Google, this feature now has 1.5 billion monthly active users.

In recent months, Google has been experimenting with "AI Mode." This feature provides a search experience similar to using other AI chatbots.

In the new rollout plan, users of Google Search can click the label to activate "AI Mode," which will be powered by Gemini.

Robby Stein, Vice President of Google Search Products, stated that the company is considering how to incorporate ads into "AI Mode" results. He said, "We see it as part of the content mix that people actually want."