AI Chatbots Challenge Google Search: Insights from Eddy Cue’s Testimony

The technology landscape is shifting, and this week, a surprising revelation during a U.S. antitrust trial against Alphabet—the parent company of Google—has shaken investors. Apple’s senior vice president, Eddy Cue, disclosed that for the first time in over two decades, the volume of Google searches conducted through Apple’s Safari browser has declined. Cue attributed this trend to the rise of AI-powered tools that are increasingly favored by users.

This statement sent shockwaves through the market, causing Alphabet’s stock to plummet by as much as 9% during intraday trading, although it recovered slightly later. Nonetheless, the shares still ended about 6% lower than before Cue’s remarks, raising serious questions about Google’s future in the search engine sphere.

Is Google Search Really Losing Ground to AI Chatbots?

Historically, Google Search has dominated the way individuals find information online, accounting for approximately 55% of Alphabet’s total revenue. However, the emergence of new players, particularly AI chatbots like ChatGPT, is beginning to influence user behavior.

Cue’s assertion has sparked concerns among investors worried about the potential erosion of Google’s dominance in search. Data supporting these fears is accumulating.

Assessing the Decline in Google Search Traffic

While Eddy Cue pointed to a drop in Safari-based search traffic, Google responded by clarifying that overall search queries are continuing to grow. The company stated, “We continue to see overall query growth in Search,” adding that total queries from Apple devices are also on the rise. This suggests that while users might not be searching through Safari, they are still turning to Google via its app, Chrome, or voice-based commands.

Are AI Chatbots Like ChatGPT and Gemini Capturing Search Market Share?

Independent data indicates a slight but steady decline in Google’s search engine market share since the launch of ChatGPT in November 2022. According to StatCounter, Google’s global market share has decreased from 93% to a little under 90%, marking its first dip below 90% since 2015.

During the same period, Microsoft’s Bing, now fueled by OpenAI’s models, grew marginally from 3% to 3.9% market share. SimilarWeb pointed to a 2% decline in Google’s search share year-over-year, highlighting a broader trend where traditional search engines are experiencing traffic drops as users gravitate toward AI-based tools.

As of 2024, ChatGPT accounts for only around 1% of total traffic compared to Google. However, it leads the AI chatbot sector with 80% of the market share, trailed by DeepSeek (6.5%), Google’s own AI tools (5.6%), Grok by X (2.6%), and Perplexity (1.5%).

Shifts Among Younger Users: Google vs. Social Media

Another significant trend is the changing preferences among younger users. A report by Bernstein Research in September 2024 revealed that nearly half of Gen Z users prefer platforms such as TikTok or Instagram over Google for queries relating to travel, dining, and products.

This behavioral shift underscores a decreasing reliance on Google for specific types of searches, as social media platforms increasingly become the preferred source of information for younger demographics.

The Impact of AI on Google’s Ad Revenue

Despite the declining search share, Google Search revenue grew by 7% in Q1 2025. However, this growth is slower than the rates observed throughout 2024. Paid clicks in Alphabet’s “Search & Other” segment only saw a 2% growth, down from 5% in the previous year.

Philipp Schindler, Alphabet’s chief business officer, stated that monetization remains stable, yet he refrained from addressing queries concerning click-through rates (CTR) after the introduction of AI Overviews that provide instant answers in lieu of traditional search results lists.

According to analyst Doug Anmuth from JPMorgan, AI Overviews are likely a contributing factor to the slower growth in paid clicks, as they limit available ad space while offering users more straightforward answers. Research from marketing firms indicates CTRs may have fallen by as much as 35% for these AI-produced answers compared to conventional search results.

Does Alphabet Face Immediate Danger?

In April 2025, during the antitrust trial, Google executive Sissie Hsiao admitted that AI tools like ChatGPT have cut into certain search categories, such as math assistance and homework help—areas that may not drive significant ad revenue. However, the real concern lies in what changes lie ahead for Google.

Alphabet is not at immediate risk; it remains a dominant force in the search landscape. Its revenue base is diverse, supported by additional products like YouTube and Cloud services. Yet, the company is aware of what experts term the “innovator’s dilemma,” where existing leaders must adapt to disruptive changes to maintain their competitive edge.

Conclusion: A Pivotal Moment for Google

As AI continues to redefine how users access information, the shift highlighted by Eddy Cue’s comments may be happening more rapidly than anticipated. Google must act quickly to adapt to shifting user behaviors and preferences to avoid losing users and revenue to emerging platforms and tools.

FAQs

Q1: Is AI replacing Google Search?
AI chatbots like ChatGPT are gradually altering how people search for information, especially for quick answers.

Q2: Why did Google Search volume drop on Safari?
Eddy Cue indicated that users are increasingly choosing AI tools over Safari for online searches.

Q3: What is the current market share of Google compared to its competitors?
Google’s market share has dipped below 90%, while Microsoft’s Bing has seen a slight increase since it started using OpenAI’s models.

Q4: How are younger users changing the search landscape?
Nearly half of Gen Z users now prefer social media platforms like TikTok and Instagram for searching for recommendations, indicating a shift away from traditional search engines.

Q5: Is Alphabet at risk of losing its market dominance?
While Alphabet faces challenges, it remains a leading player with a broad revenue base. However, it must quickly adapt to evolving user behaviors and competitor threats.