AI tools disrupt Google’s dominance, threatening ad revenues

AI-based applications are radically changing user habits. The rise of tools like ChatGPT is threatening the advertising revenues and dominance of tech giants like Google.

The rapid rise of AI technologies has begun to shake the dominance of traditional search engines. While Google has been the leader of the search world for decades, AI-based tools and changing user behaviors are fundamentally transforming the digital ecosystem.

AI IS USHERING IN A NEW ERA

The global AI market is expected to grow from $86.9 billion in 2022 to $407 billion by 2027. Users are increasingly turning to AI-based tools instead of traditional search engines like Google for information. For example, OpenAI's ChatGPT is gaining popularity by providing short and concise answers to user questions. This shift is reducing traffic to search engines and impacting the digital advertising ecosystem.

According to IBM's Global AI Adoption Index, 42% of companies are actively using AI technologies. India leads with a 59% adoption rate, while the U.S. and European countries closely follow this trend.

GOOGLE'S AD REVENUES AT RISK

A significant portion of Google's revenue comes from search ads. However, as users increasingly turn to platforms like Amazon and TikTok for direct searches and prefer AI tools, these revenues are expected to decline. Experts predict that Google's share of the U.S. digital ad market could fall below 50% by 2025, while Amazon and TikTok's market shares are expected to grow rapidly during the same period.

AI is not only changing user experience but also transforming the advertising ecosystem. According to advertising platform data, the click-through rate for ads is declining every year. This trend indicates that brands and publishers need to develop new strategies.

AI USAGE IN TÜRKIYE

In Türkiye, 17.5% of businesses are using AI technologies, especially in customer relations and marketing. AI-powered applications and software are increasingly being adopted in the country.

GOOGLE'S RESPONSE: AI-POWERED TOOLS

To keep up with this change, Google has developed its own AI-powered platforms. By introducing tools like Gemini, the company is trying to position itself against competitors and adapt to changing search habits. However, experts emphasize that Google needs to take more radical steps to maintain its leadership in this new world.

WHAT LIES AHEAD?

The growth of the global AI market continues without slowing down. The number of apps with "AI" in their names in the App Store has increased by 1033%, showing just how popular this technology has become among users. AI is becoming an indispensable part of daily life by offering more personalized and faster solutions for both businesses and individuals.

However, this situation is making the future of tech giants like Google uncertain. The transformation of search engines and the decline in advertising revenues are bringing new opportunities and risks to the digital world. This shift is forcing both tech giants and users to undergo significant restructuring.