The addition of AI-powered search options to Apple’s Safari browser has sent shockwaves through the tech sector as the iPhone maker looks to compete with Google’s stranglehold on searches. The addition of these options represents yet another development in the never-ending saga of Apple’s attempts to restructure its ecosystem, and might signify the beginning of the end for Google’s domination over mobile search. 

Evolution of Searching and Advertising – The Impact of AI Technology

Apple’s endeavour to implement AI search functionalities, which encompass ChatGPT and Perplexity AI, directly targets Google’s previously uncontested role as the default search engine on the iPhone. Reports indicate that Apple executive Eddy Cue affirmed Safari’s search traffic had begun to stagnate because users are heavily relying on AI to perform tasks online. Google’s partnership with Apple, which has existed for years on a $20 billion contract, GoogleGoogle paying Apple for the default search engine position has recently paid off. This revenue stream represents nearly 36% of Google’s search advertising revenue earned from the browser. As a significant change, AI-powered search engines will allow a user to interact far more efficiently and intimately in ways that were never previously true. 

The Rise of Google’s Competition

Despite such innovations, AI-sustained technologies like Google are witnessing galloping competition. Along the same timeline, Apple’s latest initiatives led to a $150 billion loss in stock market value to Google’s parent company, Alphabet, when their shares fell by 7.3%. Industry experts are now pondering whether the search service for Google has a perilous future, particularly because it has been relying extensively on mobile devices and Safari. As tools like ChatGPT and Perplexity become staples of modern society, the real challenge is determining whether Google continues dominating the search engine industry or if Apple’s advanced devices will outstrip them.