Google AI's Search Revenue Matches Traditional Ads, Says Alphabet But There Is Rising Competition From OpenAI, Perplexity, DeepSeek

Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) revealed that its artificial intelligence-powered search features are achieving monetization rates comparable to traditional search results, marking a milestone in the company’s AI strategy.

What Happened: During Alphabet’s fourth-quarter of 2024 earnings call, Chief Business Officer Philipp Schindler announced that AI overviews, the company’s AI-enhanced search feature, is delivering revenue at “approximately the same rate” as conventional search results.

This performance suggests the successful integration of AI technology without sacrificing the company’s core revenue engine.

The development is particularly noteworthy given that search advertising remains Alphabet’s largest revenue source, generating $54 billion in the fourth quarter, up 13% from the previous ...

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