Google's unleashes 'AI Mode' in the next phase of its journey to change search

Economic Times

21-05-2025

AP Alphabet CEO Sundar Pichai speaks at a Google I/O event in Mountain View, Calif., Tuesday, May 20, 2025. (AP Photo/Jeff Chiu)
Google on Tuesday unleashed another wave of artificial intelligence technology to accelerate a year-long makeover of its search engine that is changing the way people get information and curtailing the flow of internet traffic to websites. The next phase outlined at Google's annual developers conference includes releasing a new "AI mode" option in the United States. The feature makes interacting with Google's search engine more like having a conversation with an expert capable of answering questions on just about any topic imaginable. AI mode is being offered to all comers in the U.S. just two-and-a-half-months after the company began testing with a limited Labs division audience. Google is also feeding its latest AI model, Gemini 2.5, into its search algorithms and will soon begin testing other AI features, such as the ability to automatically buy concert tickets and conduct searches through live video feeds. In another example of Google's all-in approach to AI, the company revealed it is planning to leverage the technology to re-enter the smart glasses market with a new pair of Android XR-powered spectacles. The preview of the forthcoming device, which includes a hands-free camera and a voice-powered AI assistant, comes 13 years after the debut of "Google Glass," a product that the company scrapped after a public backlash over privacy concerns.
Google didn't say when its Android XR glasses will be available or how much they will cost, but disclosed they will be designed in partnership with Gentle Monster and Warby Parker. The glasses will compete against a similar product already on the market from Facebook parent Meta Platforms and Ray-Ban.
AI's big role in Google search The expansion builds upon a transformation that Google began a year ago with the introduction of conversational summaries called "AI overviews" that have been increasingly appearing at the top of its results page and eclipsing its traditional rankings of web links. About 1.5 billion people now regularly engage with "AI overviews," according to Google, and most users are now entering longer and more complex queries. "What all this progress means is that we are in a new phase of the AI platform shift, where decades of research are now becoming reality for people all over the world," Google CEO Sundar Pichai said before a packed crowd in an amphitheater near the company's Mountain View, California, headquarters.
AI ripples across the internet Although Pichai and other Google executives predicted AI overviews would trigger more searches and ultimately more clicks to other sites, it hasn't worked out that way so far, according to the findings of search optimization firm BrightEdge. Clickthrough rates from Google's search results have declined by nearly 30% during the past year, according to BrightEdge's recently released study, which attributed the decrease to people becoming increasingly satisfied with AI overviews. The decision to make AI mode broadly available after a relatively short test period reflects Google's confidence that the technology won't habitually spew misinformation that tarnishes its brand's reputation, and acknowledges the growing competition from other AI-powered search options from the likes of ChatGPT and Perplexity. Will AI undercut or empower Google? The rapid rise of AI alternatives emerged as a recurring theme in legal proceedings that could force Google to dismantle parts of its internet empire after a federal judge last year declared its search engine to be an illegal monopoly.
In testimony during a trial earlier this month, longtime Apple executive Eddy Cue said Google searches done through the iPhone maker's Safari browser have been declining because more people are leaning on AI-powered alternatives. And Google has cited the upheaval being caused by AI's rise as one of the main reasons that it should only be required to make relatively minor changes to the way it operates its search engine because technology already is changing the competitive landscape. But Google's reliance on more AI so far appears to be enabling its search engine to maintain its mantle as the internet's main gateway - a position that's main reason its corporate parent, Alphabet Inc., boasts a market value of $2 trillion. During the year ending in March, Google received 136 billion monthly visits, 34 times more than ChatGPT's average of 4 billion monthly visits, according to data compiled by onelittleweb.com. Even Google's own AI mode acknowledged that the company's search engine seems unlikely to be significantly hurt by the shift to AI technology when a reporter from The Associated Press asked whether its introduction would make the company even more powerful. "Yes, it is highly likely that Google's AI mode will make Google more powerful, particularly in the realm of information access and online influence," the AI mode responded. The feature also warns that web publishers should be concerned about AI mode reducing the traffic they get from search results. Even more AI waiting in the wings Google's upcoming tests in its Labs division foreshadow the next wave of AI technology likely to be made available to the masses.
Besides using its Project Mariner technology to test the ability of an AI agent to buy tickets and book restaurant reservations, Google will also experiment with searches done through live video and an opt-in option to give its AI technology access to people's Gmail and other Google apps so it can learn more about a user's tastes and habits. Other features on this summer's test list include a "Deep Search" option that will use AI to dig even deeper into complex topics and another tool that will produce graphical presentations of sports and finance data. Google is also introducing its equivalent of a VIP pass to all its AI technology with an "Ultra" subscription package that will cost $250 per month and include 30 terabytes of storage, too. That's a big step beyond Google's previous top-of-the-line package, which is now called "AI "Pro," that costs $20 per month and includes two terabytes of storage.