Google’s search monopoly faces growing AI competition

Google’s dominance in the search engine market faces growing challenges from AI advancements, particularly from OpenAI, while also dealing with ongoing antitrust scrutiny. A recent US ruling deemed Google’s search monopoly illegal, marking a significant victory for regulators. However, experts argue that the real threat to Google is the rapid adoption of AI tools like OpenAI’s ChatGPT, reshaping how people search the internet.

Despite Google’s long-standing control of around 90% of the global search market, the rise of AI-powered search alternatives is beginning to erode its position. Former Google engineers and industry analysts believe AI’s impact will be felt much sooner than the effects of antitrust rulings, which often take years.

Historically, Apple has partnered with Google for search services, but it is now exploring AI-driven alternatives. The tech giant has announced a non-exclusive partnership with OpenAI to integrate ChatGPT into its devices, signalling a shift from Google’s search dominance.

OpenAI’s move into the search market with its AI-powered SearchGPT further intensifies the competition. Some analysts predict that AI’s influence on search could outpace regulatory actions, potentially dismantling Google’s monopoly.

Why does it matter?

Although Google has the resources to lead in AI development, its response could have been faster than that of competitors like OpenAI’s swift rise. Google’s initial missteps with AI-powered search features, which were criticised for inaccuracies and errors, have raised concerns about the company’s ability to maintain trust with users.

Analysts suggest that while antitrust actions may not immediately weaken Google’s position, they could pave the way for increased competition in the search market. However, breaking Google’s dominance will be challenging, and whether these developments will lead to significant changes in consumer choice remains to be seen.