Google shares continue to decline, extending losses to 9% following Apple's announcement of plans to add AI search capabilities to its browser.

Google shares continue to decline, extending losses to 9% following Apple's announcement of plans to add AI search capabilities to its browser.

Google shares have continued to experience a decline, extending losses to 9% following Apple's announcement of plans to integrate AI search capabilities into its browser. The news comes as Google expands its AI Mode in Search, aiming to stay competitive in the rapidly evolving AI landscape.

Google's AI Mode, powered by the Gemini 2.0, is now available to all users in the US through Search Labs without a waitlist. The feature, which was first introduced earlier this year, provides advanced reasoning and multimodal input processing to respond to more complex queries [1]. This expansion comes with new features such as visual cards and the ability to follow up on past queries, enhancing user experience and making search interactions more dynamic.

However, Apple's announcement to integrate additional third-party AI models into its Apple Intelligence suite, including Google's Gemini AI, has raised concerns among investors. Google CEO Sundar Pichai confirmed that Google is in talks with Apple to offer Gemini AI as a built-in option for iPhones this year [2]. This development could potentially reduce Google's dominance in the AI search market, leading to a shift in user preferences and a potential impact on Google's revenue streams.

Moreover, Google is also exploring new revenue streams by integrating ads within AI chatbots. According to Bloomberg, Google is expanding its AdSense service to include ads in AI chatbot conversations, aiming to increase advertising revenue [3]. This move is part of Google's strategy to adapt to changing user behavior and maintain its market position.

In summary, while Google's expansion of AI Mode in Search aims to enhance user experience and stay competitive, the news of Apple's AI integration plans and Google's ad integration strategy has contributed to a decline in Google shares. Investors are closely watching these developments to gauge their impact on Google's financial performance and market position.

References:
[1] https://www.business-standard.com/technology/tech-news/google-expands-ai-mode-in-search-with-new-features-details-125050200670_1.html
[2] https://www.business-standard.com/technology/tech-news/apple-may-add-gemini-and-other-third-party-models-to-its-ai-suite-report-125050100458_1.html
[3] https://gigazine.net/gsc_news/en/20250502-google-integrates-adsense-chatbot-conversations/