Major shifts are underway in the search engine market as artificial intelligence engines, such as OpenAI´s ChatGPT and Perplexity AI, begin to seriously challenge Google´s long-standing dominance. This disruption was underscored by recent comments from Apple executive Eddy Cue, who said that searches on Apple´s Safari browser declined for the first time last month, largely due to the growing adoption of these artificial intelligence-driven tools. Cue indicated that Apple is planning to offer such engines as future options to Safari users, potentially altering the search landscape even further.
Following Cue´s remarks, Google´s shares fell more than 8%, signaling investor concern about the potential erosion of one of Google´s most profitable business units. Historically, Google has paid Apple significant sums—estimated in the billions annually—to remain the default search engine on iPhones. However, with the rise of advanced artificial intelligence competitors, payment dynamics and user preferences could shift, threatening this lucrative arrangement. Cue´s comments came during testimony in a federal antitrust case against Google´s parent company, Alphabet, shining a spotlight on the intensifying regulatory and competitive pressures the tech giant now faces.
The competitive drive extends beyond start-ups and new entrants. Longstanding industry players like IBM are also capitalizing on the artificial intelligence revolution. IBM´s stock has surged nearly 15% year-to-date, buoyed by its focus on generative artificial intelligence and supporting enterprise adoption, particularly through open-source strategies that cater to clients regardless of their preferred artificial intelligence providers. This all points to a tech ecosystem in flux, where agile advances in artificial intelligence are transforming traditional business models—not only upending search but reshaping broader corporate strategies and partnerships across the sector.
