Apple’s New AI Search Plans Hit Google Where It Hurts: All Details Inside

Apple is planning to add AI-powered search features to its Safari browser, which could seriously hurt Google’s hold on the search market. Since many iPhone users rely on Google, this move could shake up its ad business. According to Reuters report, after the news came out, Alphabet (Google’s parent company) saw its stock drop 7.3 per cent, losing around $150 billion in value.

The iPhone maker is actively exploring ways to reshape its Safari browser, according to Apple executive Eddy Cue, who shared the information during his testimony in an antitrust case on Wednesday about Google’s dominance in online search, Reuters reported.

Currently, Google serves as the default search engine on Safari, a position for which it pays Apple approximately £20 billion annually, accounting for about 36 per cent of its search advertising revenue generated through the browser. Any changes in this partnership could reshape the search landscape, especially given Apple's vast user base of around 2.5 billion devices

According to the report, analysts say the move toward AI search is already happening. Search activity on Safari has gone down, as more users are turning to AI tools instead. Eddy Cue said that Safari searches dropped for the first time last month, likely because of growing interest in AI search options like OpenAI and Perplexity AI.

Apple also partnered with OpenAI to bring ChatGPT into Siri, while Google is trying to add its own AI to Apple devices. This growing competition is a big problem for Google, which controls about 90 per cent of the search ad market.

If Apple adds AI search tools to Safari, it could affect how advertisers spend their money. With new options besides Google, advertisers may choose to split their budgets, instead of putting it all into Google.

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