Apple's AI Ambitions: A Challenge to Google's Search Supremacy

Apple is exploring AI-driven search features for Safari, challenging Google’s dominance. This move could alter the search market landscape, dramatically affecting Google's ad revenue. With Apple’s large device ecosystem, the shift could significantly impact Google's share as advertisers may diversify their budgets away.

Apple is reportedly considering the integration of artificial intelligence-driven search functionalities into its Safari browser, potentially disrupting Google's hold on the search market. The news came to light during Apple executive Eddy Cue's testimony in the U.S. Department of Justice's antitrust case against Google.

The potential shift has triggered market tremors, with Alphabet's shares falling 6% amid the revelation. Apple's stock also dropped 2%. Google's position as the default search engine on Apple's browser accounts for substantial revenue, roughly $20 billion annually. Analysts indicate this move could encourage advertisers to reallocate search advertising budgets.

Looking ahead, Apple plans to incorporate AI search providers like OpenAI and Perplexity as alternatives on Safari, though not as default options. This strategic pivot by Apple leverages its 2.5 billion device users and responds to emerging competitors in the AI space, reshaping the trajectory of online search. Experts are also speculating whether Apple might introduce an ai image generator.

(With inputs from agencies.)