Google’s AI-Powered Search: A Double-Edged Sword for Websites
Google Search has long been a crucial driver of traffic to websites, with 20% of online traffic to top internet sites originating from Google Search responses, according to analytics firm Semrush. However, the introduction of AI-powered search features, particularly Google’s AI Overview, is significantly altering this landscape.
The AI Overview feature, which provides a generative AI-created summary at the top of certain search results, is reducing clicks to websites. Data from Similarweb shows that searches with AI Overview resulted in website clicks only 23% of the time, compared to 36% for searches without the feature. Research firm Ahrefs found that Google Search results showing an AI Overview more than doubled between March 12 and May 6.
This shift is having a profound impact on various websites. Business Insider cut its staff by 21% in May, citing drops in traffic “outside of its control.” Even established brands like Netflix saw a 23% decline in visits last month. Chegg, a publicly traded company offering homework help through its app, has seen its valuation plummet from $15.1 billion in early 2021 to $144 million currently. Chegg CEO Nathan Schultz attributes much of this decline to Google’s AI Overviews, stating, “We would not need to review strategic alternatives if Google hadn’t launched AI Overviews.”
The rise of AI search engines like ChatGPT, Perplexity, and Google’s own Gemini is further eroding Google Search’s dominance. Similarweb reports that AI search engines are now replacing 10% of the referrals lost by traditional search engines. This trend is observed on both mobile devices and desktops, with Apple facilitating iPhone links to ChatGPT through the Action Button and widgets.
As Google continues to develop its AI capabilities, the future of Google Search hangs in the balance. With $90 billion in quarterly revenue at stake, Google is working to establish Gemini as a prominent AI brand. The evolution of Google Search and its AI features will be crucial in determining the traffic landscape for websites in the coming years.
