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HomeTech TrendsGoogle’s search and revenue slip as AI becomes Gen Z’s go-to tool

Google’s search and revenue slip as AI becomes Gen Z’s go-to tool

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Google search has been everybody’s companion since time immemorial, from satisfying simple curiosities to life-changing concerns. But in recent years, the advent of AI tools such as ChatGPT, PerplexityAI, Grok, among others, has reduced users’ reliance on Google, and the gap keeps getting wider as the years go by and more of these AI tools are being invented.

These tools provide concise responses and descriptions, transforming the user experience by presenting data in an easier-to-understand manner. Websites that formerly depended on search engine traffic are seeing sharp drops in both visitors and income as AI continues to create and generate information directly within search results.

A survey by Vox Media shows that Google continues to lose ground among younger generations, with 61% of Gen Z and 53% of Millennials using AI tools instead of Google or other traditional search engines. 42% said Google and search engines are becoming less useful.

Google’s market share fell below 90% for the first time since 2015, and other surveys suggest that users are dissatisfied with the quality of their searches. Everything is evolving quickly, from the emergence of generative engine optimization and AI answer engines to the expansion of social media platforms for discovery (like Instagram, Pinterest, and TikTok). These changes are still causing many marketers and businesses to adapt.

Questions about Google’s search dominance have been buzzing ever since 2022, when OpenAI’s ChatGPT exploded onto the scene. Analysts immediately began speculating that AI chatbots would supplant search engines as internet users’ preferred source of information and analysis. 

Google is shifting from the traditional blue-link results page to a simplified AI-powered result, according to Gene Munster, Managing Partner at Deepwater Asset Management, in a post to X. He says the change poses two problems for Google: “First, the monetization model of sponsored ads needs to be overhauled. Second, Google Search has new competitors, including OpenAI, Grok, Perplexity, etc.”

To stay on top of its game, Google has prioritized integrating AI into its search engine. According to executives on Google’s parent company, Alphabet’s earnings call last month, the company has launched AI Overviews, which answer monthly questions from over 1.5 billion people across 140 countries. According to executives, the monetization of AI summaries is comparable to that of traditional search.

By leveraging its AI capabilities like Gemini and features such as AI overviews, Google continues enhancing its search engine to deliver users more personalised and relevant results.

However, Gartner, Inc. predicts that by 2026, traditional search engine volume will drop 25%, with search marketing losing market share to AI chatbots and other virtual agents.

“Organic and paid search are vital channels for tech marketers seeking to reach awareness and demand generation goals,” said Alan Antin, Vice President Analyst at Gartner. “Generative AI (GenAI) solutions are becoming substitute answer engines, replacing user queries that previously may have been executed in traditional search engines. This will force companies to rethink their marketing channels strategy as GenAI becomes more embedded across all aspects of the enterprise.”

AI-powered search engines are indeed revolutionizing the online search market, offering personalized and accurate results. But the future of Google search appears to be set for further development as AI continues to be included in the main search engines to catch up with the trend of this generation. The value of content may be better measured by new measures than just clicks, and SEO tactics will probably change to give AI-friendly content priority.

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