In a significant shift in the tech landscape, Apple has set the stage for a potential upheaval in the search engine market. On May 8, 2025, Alphabet Inc.'s stock price plummeted by over 7% following remarks from Eddy Cue, Apple's Senior Vice President of Services, who suggested that artificial intelligence (AI) could soon replace traditional search engines like Google. Cue's comments were made during a federal court hearing in Washington, D.C., where the U.S. Department of Justice is currently pursuing legal action against Alphabet for alleged monopolistic practices in the search advertising market.
During the hearing, Cue revealed that Apple plans to integrate various AI services such as OpenAI, Perplexity, and Anthropic into its Safari browser. This move comes amid ongoing scrutiny of Google's practices, which reportedly include paying Apple around $20 billion annually to maintain its status as the default search engine on iPhones. The implications of this lawsuit are significant, as a ruling against Google could severely impact its advertising revenue, a critical component of Alphabet's business model.
As the legal battle unfolds, the market's reaction has been swift and severe. Following Cue's announcement, shares in Apple also dipped approximately 2%, highlighting the market's sensitivity to changes in the search engine landscape. Interestingly, Cue pointed out that for the first time in April, Safari experienced a drop in search volume, a trend he attributes to the increasing popularity of AI-integrated search tools. This shift indicates a broader change in consumer behavior, particularly among younger users and professionals who are now opting for AI solutions over traditional search methods.
Nguyen Minh Tri, a programmer based in Ho Chi Minh City, shared his experience, stating, "Since the beginning of 2024, I've used Google less when searching for technical documents. I ask ChatGPT directly for explanations and code fixes, which is much quicker and more targeted than sifting through numerous Google links." Similarly, Ha An, a marketing professional in Hanoi, noted that she now frequently uses ChatGPT or Grok-3 for information retrieval and brainstorming, saying, "The speed and convenience of AI make me reluctant to return to old search methods."
If this trend continues, companies that rely heavily on search advertising, like Google, may face significant challenges not only in technology but also in retaining users in an increasingly AI-driven era. A recent survey conducted by The Information revealed that 55% of respondents are now using chatbots for daily queries instead of conventional search engines, underscoring the rapid evolution of user preferences.
In addition to these developments, Apple is reportedly considering a major overhaul of the Safari browser to incorporate AI-supported search tools. Cue disclosed this information during the May 7 court hearing, emphasizing that the partnership with Google, which has defined the default search experience on Apple devices, may be at risk. As Apple explores options to enhance its search capabilities, it is also looking into integrating Google's AI search product, Gemini, later this year, alongside other AI tools from companies like Anthropic and Perplexity.
The ongoing legal proceedings and the potential shift away from Google as the default search engine on iPhones could reshape the competitive landscape of search technology. As AI continues to gain traction, traditional search engines may find themselves needing to adapt quickly to the changing demands of users.
As the situation develops, the implications for both Apple and Google are profound. On one hand, Apple stands to gain from diversifying its search capabilities and potentially increasing its revenue streams by moving away from its reliance on Google. On the other hand, Google faces the prospect of losing a significant portion of its user base and advertising revenue if it cannot adapt to the new AI-driven search paradigm.
In a market that is increasingly influenced by technological advancements, the stakes are high. The integration of AI into search tools not only represents a technological evolution but also a fundamental shift in how users seek information. As Eddy Cue noted, the rise of AI tools is not just a passing trend; it is becoming a new habit, particularly among younger users and professionals.
As the legal battle continues and both companies navigate this shifting landscape, the future of search technology remains uncertain. However, one thing is clear: the era of traditional search engines may be coming to an end, paving the way for a new generation of AI-driven solutions that promise to change the way we access information forever.
