Google Unveils AI Mode, Gemini 2.5 to Counter Market Share Decline

Market IntelWednesday, May 21, 2025 2:04 am ET
1min read

Google is revolutionizing its search capabilities with the introduction of the Gemini model, making its search engine more intelligent, proactive, and personalized. At the Google I/O developer conference on May 20, the company unveiled a new AI Mode. This mode transcends traditional keyword matching, enabling users to pose complex questions in natural language that can span hundreds of words. The AI then deconstructs the intent and generates structured answers. Early testing indicates that users in this mode ask questions that are 2-3 times longer than in traditional search and can delve deeper into topics through multi-turn conversations. Google announced that AI Mode will be available to all users in the United States starting May 20. Additionally, Gemini 2.5 will be rolled out in the U.S. search starting this week.

Google's search engine has encountered significant challenges recently. The company's market share in the global search engine market has fallen below 90% for most of the past six months, a situation not seen in at least a decade. This decline suggests a shift in user behavior, with competitors like Bing and third-party chatbots, particularly ChatGPT, gradually eroding Google's traditional dominance. ChatGPT, for example, has seen approximately 400 million users per week as of last month.

Google has previously experimented with AI in search. Last year, it introduced AI Overviews, which provides AI-generated summaries at the top of traditional search results, helping users quickly find answers without clicking multiple links. Since its launch, AI Overviews has reached over 1.5 billion users and is now available in 200 countries and regions. However, AI Overviews faced criticism for providing absurd answers, such as suggesting that eating a small rock daily could supplement mineral intake.

The latest updates aim to address these issues and help Google regain users who have shifted to AI-powered competitors. While it remains to be seen whether these changes will be effective, it is clear that the era of search is evolving rapidly. Google's proactive approach to integrating AI into its core search functionality signals a new chapter in the search engine landscape, where user interactions are more conversational and intuitive. This transformation is not just about enhancing search capabilities but also about adapting to the changing needs and preferences of users in an increasingly digital world. The introduction of AI Mode and Gemini 2.5 represents a significant step forward in Google's efforts to maintain its leadership in the search engine market, despite the growing competition from AI-powered alternatives.