Traditional web search is increasingly becoming the domain of older generations, posing significant risks to Google’s core business. The company’s dominant position in web search—and by extension, the digital advertising segment—is under threat. A report by The Wall Street Journal highlights that Google faces mounting challenges, including competition from artificial intelligence systems and the degradation of the web ecosystem itself. We’ll keep you updated as these trends evolve.
Competitors and AI Encroach on Search
One of Google’s biggest challenges stems from people seeking alternatives for online shopping and product searches. Competitors like Amazon and TikTok are capturing both user attention and advertising revenue. By 2025, eMarketer forecasts that Google’s share of the U.S. search advertising market could drop below 50% for the first time. TikTok, for example, is already processing 3 billion daily queries worldwide, with 23% of users initiating searches within 30 seconds of launching the app.
At the same time, AI-driven tools, like ChatGPT with its integrated search, are rapidly gaining traction. Microsoft and Apple are incorporating AI chatbots into their systems, while Meta is reportedly developing a next-generation search engine. These shifts resemble past disruptions, such as e-commerce overtaking traditional retail or smartphones replacing PCs.
Web Ecosystem Degradation
Another issue lies within the ecosystem Google helped build. The rise of AI-generated content is lowering the quality of search results, forcing Google to integrate AI summaries into its search engine. While these summaries aim to keep users on Google’s platform, they reduce traffic to external sites, accelerating the decline of the broader internet ecosystem.
This trend has tangible consequences. The frequency of users clicking on ads in search results has dropped by 8% year-over-year, possibly due to AI summaries making visits to linked websites unnecessary. According to Raptive, this shift could cost site owners $2 billion in lost revenue annually. Despite these challenges, most users remain loyal to familiar systems until AI tools demonstrate a clear qualitative edge.
Legal and Policy Challenges
Adding to its woes, Google faces legal battles with the U.S. Department of Justice (DOJ), notes NIXsolutions. The DOJ has demanded the company terminate agreements that secure its status as the default search engine and divest key assets like Chrome and Android. However, some believe a political resolution under conservative leadership could avert drastic actions.
Ultimately, while legal challenges are significant, the growing competition in its core business may prove a more immediate and existential threat to Google’s future.