A leading search company has acknowledged that its newly introduced "AI mode" feature has contributed to a decline in traditional search usage, coinciding with weaker-than-expected revenue and profit figures. Executives revealed that users increasingly rely on the AI-powered tool for direct answers, reducing the need for conventional search queries. The shift has raised concerns about long-term impacts on core advertising revenue, which depends heavily on search traffic. Analysts are now scrutinizing how the company will balance innovation with maintaining its core business model.
Search giant admits its ‘AI mode’ has hurt traditional search as sales and profits undershoot expectations
