AI Is Rewriting the Rules — and This Tech Giant Is Especially Feeling the Pressure

The AI era is challenging Google’s long-standing control over the web. 

Nearly four years into the generative AI boom, Google has proven wrong those who predicted that ChatGPT would replace its search engine. But now, early signs of weakness are starting to appear in its business. 

CNBC recently reported that alternative search platforms are gaining traction. For example, DuckDuckGo downloads are rising by as much as 40% weekly, and Microsoft’s Bing surpassed one billion users last quarter. Meanwhile, Google’s search traffic has dipped slightly in recent weeks while ChatGPT use continues to climb. 

Google still dominates search with about 90% market share, according to StatCounter. The company’s stock has surged over the past year, and its latest quarterly results showed the fastest revenue growth since 2022. 

Even so, concerns are growing as more users shift towards AI chatbots for information. ChatGPT remains the most downloaded free app on Apple’s iOS, while Anthropic’s Claude is also climbing the rankings. 

At the same time, some users are moving away from AI-driven search and choosing simpler, non-AI options. A March Pew Research study found that about half of Americans feel “more concerned than excited” about AI in their daily lives. In response, DuckDuckGo introduced a “no-AI” search option earlier this month that lets users switch to a version of search without AI features. 

“A lot of people use Google because Google is like the front page of the internet, but they want to go on these journeys and do the clicking and searching themselves and make their own decisions,” Lily Ray, vice president of search engine optimization and AI search at marketing firm Amsive, told CNBC.

She added that Google has to “strike a balance” because “if they go too far with AI, they’re going to lose their users.” 

Google faces the challenge of ChatGPT

Since ChatGPT debuted in late 2022, Google has faced a serious long-term challenge in the form of generative AI — especially now that the chatbot has crossed one billion monthly users. The risk isn’t just losing its lead in search, but also disrupting its own business as it shifts toward AI tools that don’t yet have a clear advertising model.

Ads still drive about three-quarters of Google’s revenue, funding everything from major AI investments to projects like self-driving cars. 

Even Google CEO Sundar Pichai has acknowledged the uncertainty around AI. In a recent interview on the Hard Fork podcast, Pichai said that people have valid reasons to feel uneasy. He described the scale of change that AI could bring as unlike anything seen before. 

He said that the industry still needs to do more to demonstrate the real benefits of AI. However, he noted that public concerns go deeper, reflecting broader unease about the scale of this technological shift. 

“People, rightfully so, are anxious about the future that this technology will bring,” Pichai said on the podcast. “I understand; it feels natural with such a profound technological shift.”