Apple’s AI-enhanced Safari set to challenge Google’s search dominance

Apple’s plan to incorporate AI-powered search options into its Safari browser poses a significant threat to Google’s search engine dominance, a business that heavily relies on iPhone users, Reuters news report said.

Apple iPhone with AI features
Apple iPhone with AI features

This development sent Alphabet’s shares plummeting by 7.3 percent, erasing approximately $150 billion from its market value.

According to Apple executive Eddy Cue, Safari searches declined for the first time last month as users increasingly turned to AI-powered alternatives.

Meanwhile, Google continues to emphasize growth in search queries from Apple devices, attributing the increase to features like voice and visual search. The shift could potentially disrupt the $20 billion annual payment Google makes to Apple to remain the default search engine, a move that U.S. regulators have scrutinized as part of antitrust actions against the tech giant.

Analysts warn that if Apple integrates alternative AI search providers like OpenAI and Perplexity AI, Google’s advertising stronghold may weaken, allowing advertisers to divert their budgets to new platforms.

Despite being perceived as lagging in AI, Google has recently launched AI-enhanced search features, such as AI Overviews and AI Mode, to retain users and bolster search ad sales. The company is also negotiating to incorporate its Gemini AI technology into Apple’s future devices, a move that underscores its strategic focus on AI to counter emerging competitors.

TelecomLead.com News Desk

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