In a significant shift in the digital landscape, Apple is positioning itself to challenge Google’s dominance in the search engine market by integrating artificial intelligence (AI) into its Safari browser. This development comes amid a backdrop of increasing scrutiny on Google, as the U.S. Department of Justice pursues an antitrust lawsuit against its parent company, Alphabet.
On May 8, 2025, Alphabet's stock price plummeted by more than 7% following comments made by Eddy Cue, Apple’s Senior Vice President of Services, during a federal court hearing in Washington. Cue suggested that AI technologies could replace traditional search engines like Google. He indicated that Apple plans to incorporate AI services including OpenAI, Perplexity, and Anthropic into Safari, marking a potential turning point in how users access information online.
"We will add them to the list—perhaps they won’t be the default," Cue stated, hinting at a future where users have more options beyond Google. This statement comes as the court deliberates on penalties or remedies against Google, which has been accused of maintaining a monopoly in the search advertising market. The implications of these proceedings could severely impact Google’s business model, particularly its advertising revenue, which is its primary source of income.
Currently, Google is reported to pay Apple approximately $20 billion annually to remain the default search engine on iPhones and other Apple devices. However, this lucrative arrangement is now under threat due to the ongoing antitrust case, which questions the legality of such agreements.
Interestingly, Cue’s testimony also revealed a notable decline in Safari's search volume, which saw its first drop in April 2025. This decline is attributed to the rise of AI-integrated search tools, as users increasingly favor platforms that provide quick, synthesized answers over traditional search methods. This trend is not just anecdotal; a recent report from Similarweb indicates that visits to Google are decreasing while traffic to AI platforms is steadily increasing.
For many users, particularly those in the tech-savvy younger demographic, the shift from Google to AI tools is becoming a new norm. Nguyen Minh Tri, a programmer based in Ho Chi Minh City, shared his experience, stating, "Since the beginning of 2024, I've been using Google less when researching technical documents. I ask ChatGPT directly to explain algorithms, fix code errors, and sometimes even rewrite scripts—it's much faster and more targeted than sifting through dozens of links on Google."
Similarly, Ha An, a marketing professional in Hanoi, noted her own transition away from traditional search methods. "Instead of typing in keywords like before, I often use ChatGPT or Grok-3 to look up information or brainstorm article ideas. While I still occasionally need to verify the information, the speed and convenience of AI make me reluctant to revert to my old search habits," she explained.
This growing reliance on AI for information retrieval poses a challenge not only for Google but also for Apple. As the company continues to benefit from revenue-sharing agreements with Google, a decline in user engagement on Safari could jeopardize its earnings. With the antitrust lawsuit looming, Apple must navigate these waters carefully to maintain its revenue stream while also innovating its product offerings.
In light of these developments, Apple is increasingly looking to third-party partners to bolster its AI capabilities. Recently, the company has partnered with OpenAI to enhance Siri's functionality within a new feature set dubbed "Apple Intelligence." This collaboration allows Apple to leverage advanced AI technologies while also positioning itself as a competitor in the search engine space.
As part of this strategy, Apple may require AI partners to agree to revenue-sharing arrangements similar to those it currently enjoys with Google. Cue emphasized that Apple is keen on ensuring that these AI platforms not only provide competitive search capabilities but also enhance the overall user experience with richer data sources.
The implications of these shifts are profound. If the trend of users opting for AI-driven search continues, companies that rely heavily on traditional search advertising models, like Google, will face a significant reconfiguration of their business strategies. The landscape of digital information retrieval is evolving, and both Apple and Google must adapt to the changing preferences of users who now favor the immediacy and efficiency of AI.
In summary, as Apple integrates AI into Safari and explores new partnerships, it signals a pivotal moment in the ongoing competition with Google. The outcome of the antitrust lawsuit against Alphabet could further reshape this dynamic, potentially altering how users engage with search technologies in the future. This evolution not only highlights the rapid advancements in AI but also reflects a broader shift in consumer behavior as preferences evolve in the digital age.