Apple is changing its Safari browser. It will add new AI-powered search providers like OpenAI and Perplexity. This change, backed by executives in an antitrust trial, questions Google’s grip on web searches for iPhones.
Search volume in Safari has dropped. This suggests users are moving to AI-driven options. Apple views this as a chance to change the search experience. They want to rely less on Google. This could lead to a system with multiple providers.
Google’s $20 Billion Default Search Deal at Risk
Google pays Apple about $20 billion each year to stay as the default search engine on Safari. This deal accounts for nearly 36% of Google’s mobile search ad revenue through Apple devices. Losing this exclusivity would be a massive blow to Alphabet’s bottom line.
The financial stakes are significant.
- Default search revenue from Safari is a critical cash stream.
- A loss could ripple through Google Ads, AdSense, and its Search Network.
- It threatens Alphabet’s dominance in mobile search, where it holds a near 90% market share.
Antitrust Tensions Mount: The DOJ vs Google
U.S. regulators are looking into Google’s payments to companies like Apple. They see this as anti-competitive behavior. The Justice Department wants to ban these deals. This is part of its legal push to end Google’s monopoly in online search.
If these proposals succeed:
- Google could lose default positions across multiple platforms.
- Search traffic fragmentation would accelerate.
- Advertisers might move large budgets from Google to new AI search options.
Legal changes are impacting Google. Its main business, search-based advertising, faces challenges and risks.
AI-Powered Disruption: ChatGPT, Perplexity & Apple
Apple’s move to add AI-based search engines isn’t just a change in design. It’s shaking up how we search.
Consider the current contenders:
- OpenAI’s ChatGPT now handles over 1 billion weekly web searches.
- Perplexity AI offers real-time, citation-backed search results tailored for information depth and clarity.
- Both platforms use generative AI. They provide direct answers instead of indexed links.
Apple’s integration of these engines hints at a future. Users may engage in conversational and context-aware searches. This would allow them to skip traditional keyword-matching models.
How Google Is Fighting Back With Gemini AI
Google is not standing idle. It has added its Gemini AI to the main search experience. Plus, it launched AI Overviews in over 100 countries. Generative summaries appear above regular search results. They aim to keep users engaged.
Key moves:
- AI Mode on Google Search offers contextual and generative insights.
- Ads are now embedded within AI Overviews to maintain ad revenue flow.
- Google is reportedly negotiating with Apple to integrate Gemini AI directly into iPhones.
These tactics show that Google’s strategy involves AI assimilation, not reinvention.
What This Means for the Digital Ad Ecosystem
Advertisers have long relied on Google’s dominance to reach users with high intent. Users are now favoring generative, non-indexed search, so budgets must be adjusted.
Consequences:
- Brands must optimize for AI discoverability, not just traditional SEO.
- Search ads may lose effectiveness if AI models bypass commercial content.
- New metrics will aim at improving AI prompts, adding answers, and scoring trust in LLM results.
Google’s monopoly provided predictability. The rise of AI search introduces volatility and competitive pluralism.
The Future of AI Search
We’re entering an era where search becomes interactive, personalized, and non-linear. Users can ask complex questions or give instructions instead of just typing keywords. Legacy search engines aren’t built to handle this well.
What to expect:
- Browser-level integrations of AI chat-based interfaces.
- API-level AI integration with apps, reducing the need for web search.
- Platform-level partnerships between hardware (Apple) and AI providers (OpenAI, Perplexity).
This will change how users search for information. It will change how companies reach their audiences. It will also affect how search engines make money.
Conclusion
The search market is undergoing its most significant transformation since Google’s rise. Apple is working to diversify Safari search. Generative AI models, such as ChatGPT and Perplexity, are growing more powerful. This shows a clear shift in influence. Google’s move to add AI to old systems might not keep its monopoly strong.
We are seeing more than a battle for default status. We’re redefining what “search” means now that LLMs are here.
