On May 21st, at the I/O 2025 Developer Conference, Google announced a major upgrade to its search engine to address the direct threat posed by AI chatbots to its core business.
Google introduced a new feature called "AI Mode" that answers user questions in a chatbot-like manner, instead of just listing links. This is Google's most aggressive adjustment so far in responding to AI's impact on its search business.
Sundar Pichai, CEO of Google and Alphabet, stated: "This is a complete restructuring of the search engine to give it stronger reasoning capabilities. We are entering a new phase of AI platform transformation, with years of research gradually being realized."
Massive Industry Landscape Shift
The rapid rise of generative AI is profoundly changing how people obtain information and putting increasing transformation pressure on tech giants. AI chatbots like ChatGPT, which aggregate information and present it conversationally, are replacing the previous model of relying on Google search and clicking through links.
Google currently controls about 90% of global internet search traffic, but if users gradually shift to AI-driven alternative tools, Google's traffic and its primary revenue source—advertising—may face a decline risk.
Previously, an Apple executive testified in a federal antitrust lawsuit against Google that Apple might integrate ChatGPT or Perplexity AI options in Safari browser within the next year.
Google's AI Counterattack
To gain an edge in the AI race, Google continuously enhances its self-developed large language model Gemini and widely embeds it across multiple products.
In 2024, Google launched the "AI Overview" feature, which now has 1.5 billion monthly active users. This feature generates AI-based summary content and prioritizes it at the top of search results.
Over the past months, Google has been testing the "AI Mode" feature, with a search experience similar to mainstream AI chatbots. In the upcoming version, users can enable this mode by clicking a tab, supported by the Gemini model.
Additionally, Google plans to add a virtual clothing try-on function in AI Mode, allowing users to upload personal photos and simulate clothing wear effects.
Robi Stein, Google's Search Product Vice President, stated that the company is exploring how to integrate advertising content in AI Mode. He noted: "We believe this will provide users with a more needs-aligned content combination."
Multiple Challenges Coexist
Since ChatGPT's emergence in 2022, the generative AI field has rapidly heated up, with global tech companies investing resources to accelerate development. In comparison, Google was initially criticized for lagging behind OpenAI and its partner Microsoft, which has invested billions of dollars in this field.
Besides AI competitors' threats, Google also faces legal regulatory risks. A US federal court is hearing an antitrust case alleging Google illegally maintained its search engine monopoly, with potential remedies including forced divestiture of Chrome browser.
Google executives argued in court that market competition has become more intense since the 2020 lawsuit. Although Gemini's usage has grown significantly in recent months, it has not yet caught up with ChatGPT.
Pichai also testified in court that Gemini is accelerating its catch-up. He simultaneously revealed that Google is seeking a distribution agreement with Apple before mid-year to enable Siri to call Gemini for user queries. Currently, Apple has already integrated ChatGPT as an alternative option for Siri.
This article is from "Tencent Technology", authored by Jin Lu, published by 36Kr with authorization.
