Google's recent unveiling of 'AI Mode' during its developer conference indicates a significant pivot in its search engine operations. This new feature replaces traditional search results with Gemini-powered AI answers, promoting a user-friendly experience while retaining advertisements in a new format. Despite holding over 90% market share in search traffic and generating substantial revenue, Google's leadership is mindful of the rising competition from AI chatbots. By embedding advanced AI technology across its ecosystem, Google aims to secure its position in the digital space as user behavior shifts.
Typing into Google felt like flipping on a light switch - instant access to knowledge. However, its dominance is now under threat, prompting a daring shift.
With the launch of AI Mode, Google is rewriting the business model by integrating AI-powered responses in search, reducing reliance on traditional ad placements.
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