7 hours Ago
AI Is Changing User Habits
Apple executive Eddy Cue revealed that Safari searches declined last month, possibly due to users preferring AI-driven options. He testified during a government antitrust case, stating that services like OpenAI and Perplexity AI may eventually take the lead over traditional search engines. While these alternatives may not become the default, Cue confirmed they are likely to be included as options in Safari's future versions.
Competitive Pressures Intensify
Google's current position is under increasing pressure, not just from Apple's evolving strategy but also from emerging AI competitors. Google is reportedly in talks to have its Gemini AI integrated into Apple's new devices by mid-year. Meanwhile, Apple has already partnered with OpenAI to include ChatGPT as an option within Siri.
Market Impact and Expert Opinions
Following the news, Alphabet's stock dropped by 6%, while Apple saw a 2% decline. Analysts suggest that even without additional restrictions, losing exclusive placement on Safari could severely affect Google. One expert noted that with Google holding nearly 90% of the search market, advertisers have few alternatives. However, if AI-based platforms gain traction through deals like Apple's, advertising strategies could shift significantly.
Looking Ahead
Despite Google's recent success in showing how AI is helping drive ad revenue, its reliance on Safari for a significant share of its search business places it in a vulnerable position. If Apple follows through on its AI strategy for Safari, it could reshape not only browser search dynamics but also the broader digital advertising ecosystem.
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