NEW YORK, NY – Google, the long-dominant leader in online search, is experiencing a notable decline in market share as artificial intelligence (AI) platforms increasingly disrupt traditional search behaviors. According to recent reports, Google’s global search market share dropped below 90% for the first time since 2015, averaging 89.6% in late 2024. This shift is largely attributed to the growing adoption of AI-powered tools such as ChatGPT, Perplexity AI, and other emerging competitors.
ChatGPT alone gained 100 million users within two months of its launch, demonstrating the increasing preference for AI-generated responses over conventional web searches. A key demographic fueling this shift is younger internet users. Studies suggest that Gen Z and younger millennials prefer AI-powered interfaces for quick and conversational answers, further diminishing reliance on traditional search engines like Google.
Google’s declining search dominance is also affecting its advertising market share. Industry analysts project that the company’s share of U.S. search advertising revenue could fall below 50% for the first time in over a decade. With AI search engines offering ad-free or alternative monetization models, Google faces increased pressure to adapt its business strategy.
In addition to facing AI-driven competition, Google is also navigating heightened regulatory scrutiny. The U.S. Department of Justice has intensified antitrust actions against the company, with some reports indicating that government officials are considering forcing Google to divest key business units, such as Chrome, to reduce its market dominance.
Meanwhile, AI-focused startups like Perplexity AI continue to attract substantial investment, positioning themselves as direct competitors to Google’s search monopoly. As these companies refine their search models and expand their user base, they pose an increasing threat to Google’s long-standing supremacy.
In an attempt to innovate to maintain its relevance in the search industry, Google has already integrated AI features into its search results, including conversational AI summaries and enhanced query processing. However, whether these adjustments will be enough to counter the growing influence of AI-based search alternatives remains uncertain.
As Google’s market share continues to decline, the future of search is poised for a major transformation. Industry observers will be closely watching how Google responds to these challenges and whether AI-driven platforms will permanently redefine the way users access information online.
