Google Must Win at Artificial Intelligence or Its Search Business Could Crumble. Does This Make Alphabet an AI Stock to Buy?
In the past year, Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) lost two key antitrust cases targeted at its search engine and advertising businesses. But the tech giant can appeal these defeats, so they aren't the greatest threat Alphabet faces.The larger risk to its business right now is artificial intelligence (AI). Consumers are flocking to AI apps such as OpenAI's ChatGPT, so much so that research company Gartner estimates search engines will see a staggering 25% drop in usage next year. This could cause Google's search business to collapse if the prediction comes true.AI certainly holds the potential to unseat Google's reign atop search engines. In fact, for the first time since 2015, Google's market share dropped below 90% in the fourth quarter of 2024, and was at 89.7% in April.Continue reading
In the past year, Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) lost two key antitrust cases targeted at its search engine and advertising businesses. But the tech giant can appeal these defeats, so they aren't the greatest threat Alphabet faces.
The larger risk to its business right now is artificial intelligence (AI). Consumers are flocking to AI apps such as OpenAI's ChatGPT, so much so that research company Gartner estimates search engines will see a staggering 25% drop in usage next year. This could cause Google's search business to collapse if the prediction comes true.
AI certainly holds the potential to unseat Google's reign atop search engines. In fact, for the first time since 2015, Google's market share dropped below 90% in the fourth quarter of 2024, and was at 89.7% in April.
