Alphabet's Search Business Benefits from AI Infusion, But Competition from Microsoft and Baidu Remains a Threat

Alphabet's Search business is benefiting from AI infusion, leading the market with a 90.01% share. The company has introduced AI-powered features to boost user engagement, such as Gemini 3 and Personal Intelligence. Microsoft is also improving Bing's capabilities with AI integration, while Baidu has launched new AI-powered tools to support its search business. Alphabet shares have dropped 7.1% YTD, underperforming the broader sector.