For more than two decades, Google has been the dominant force in online search, building a $175 billion business that has become one of the cornerstones of the internet. Today, Google controls about 90 per cent of the global search market, but this position of power is under threat.
The rise of generative AI and chatbots, including OpenAI’s SearchGPT prototype, are shaking up the market and putting immense pressure on Google to adapt – or risk being eclipsed.
For one, Microsoft has invested $13 billion in OpenAI, and Apple has partnered with the company to integrate ChatGPT into its Siri voice assistant. These moves directly challenge Google’s search monopoly and signal that the American technology giant must act decisively or become obsolete.
Google’s rise to dominance was built on simplicity. Its clean, minimalistic design and powerful algorithms made it easier and faster for users to find information compared to its competitors, such as Yahoo, in the early days of the internet. By efficiently indexing and ranking vast amounts of information, Google established itself as the go-to search engine.
Rise of Gen AI
However, as the web has become more complex and technologies like Gen AI have emerged, Google’s once-groundbreaking model is starting to show its age.
AI-driven tools can generate direct answers to user queries, bypassing the need to sift through multiple links and pages – a process that has been the hallmark of traditional search engines like Google.
This shift in user behaviour is creating an existential threat to Google’s old search model. What was once its greatest asset – simplicity in search – has now become a liability, as AI-driven platforms begin to reshape the way people access information.
Adding to the pressure, upstart competitors like Perplexity, a two-year-old start-up with a $1 billion valuation that’s backed by Amazon founder Jeff Bezos, are gaining traction. These AI tools offer a more streamlined user experience, providing direct answers rather than lists of links, which is likely to draw users away from Google’s traditional search service. Who wants to see those annoying ads cluttering individual web pages when you can get straight answers right away?
For Google, this represents a major threat to its core business model, which relies heavily on advertising revenue. Google search alone generated $48.5 billion of Alphabet's $84.7 billion in revenue in the second quarter of this year.
Perhaps even more concerning for Google are the licensing deals between OpenAI and major publishers, such as the Financial Times, Axel Springer and the Associated Press. These agreements could restrict the availability of content on Google’s search engine, further weakening its stranglehold.
The relationship between Google and content creators has always been fraught, with some publishers voicing frustration over how their content is handled by the company. If AI-driven platforms secure exclusive content deals, it could force users to look elsewhere for information, diminishing Google’s value.
Despite the clear threat, Google has been cautious in its response to the rise of Gen AI. While the company has begun incorporating AI features, such as the AI Overview summaries at the top of search results, some tech commentators believe that Google’s focus on protecting its search and advertising monopoly has led to a more conservative approach to AI development.
Google’s search business remains a cash cow, and the company seems to be wary of making any moves that could cannibalise its existing revenue streams.
A big question facing Google is whether it should follow OpenAI’s lead in securing more licensing deals with publishers. However, such a move could come at a high cost. In 2020, Google pledged to pay news providers $1 billion over three years, but the potential expenses tied to copyright breaches could be substantial, putting pressure on the company’s bottom line.
One potential advantage Google has is its hardware. The newly released Pixel 9 smartphones, which come equipped with Gemini – Google’s personal AI assistant – offer a glimpse into how the company could integrate AI across its devices.
By controlling the Android operating system, Google can deeply embed AI tools into its products, essentially setting an industry standard for Samsung, Xiaomi and other Android phone manufacturers in a way to integrate Gemini. Such integration requires the deep expertise in AI that only Google can muster.
Apple, meanwhile, has created its own AI model called Apple Intelligence, which is built to operate mainly on users’ devices. Unlike large language models like GPT-4, Apple Intelligence is more lightweight. This is a deliberate choice, as Apple prioritises user privacy over the convenience that more powerful cloud-based AI might offer. As a result, Apple does not plan to integrate OpenAI directly into its devices.
Google is taking a different approach. It’s expected to integrate its advanced AI model, Gemini, directly into its Pixel devices, bringing all of Gemini’s powerful features to users.
New 'search' era
However, for Google to fully capitalise on its AI capabilities, it must address deeper issues related to leadership and strategy. The company’s culture of autonomy and freedom has been one of its core strengths. But this same culture may now be hindering Google’s ability to execute a cohesive strategy.
If Google is to remain a global tech superpower, its chief executive, Sundar Pichai, will need to unify the company’s diverse teams – including those running its core search and information services, its computing platforms including Android, plus its AI teams – under a single vision.
The company has come under fire for its cultural and organisational problems, including internal competition and a fragmented structure, which have held back its efforts in AI.
Looking ahead, Google’s ability to stay ahead of the curve will define its future, particularly as voice search continues to evolve. People are looking for quicker and easier ways to get information, and voice search makes it simple by letting them ask questions without having to type.
As smart speakers, voice assistants, and AI-powered smartphones become more common, people will likely move away from typing searches and start using more natural, conversation-like interactions to find information.
To maintain its dominance, Google needs to ensure that its technology not only keeps pace with these changes but leads them. This will require a level of innovation that transcends incremental updates to its existing search model.
Instead, Google must rethink the entire search experience, integrating AI in ways that make information retrieval seamless, whether through voice, text or perhaps even augmented reality.
The battle for the future of search will not be won or lost overnight. Google’s scale and resources still provide it with a significant buffer against competition. But the rise of gen AI has ushered in a new era of search, and whether Google can adapt to these changes will determine its very survival in the years to come.
Howard Yu is LEGO® Professor of Management and Innovation at IMD Business School, and heads IMD’s Center for Future Readiness.
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Januzaj's club record
Manchester United 50 appearances, 5 goals
Borussia Dortmund (loan) 6 appearances, 0 goals
Sunderland (loan) 25 appearances, 0 goals
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Banthology: Stories from Unwanted Nations
Edited by Sarah Cleave, Comma Press
The biog
Favourite book: Animal Farm by George Orwell
Favourite music: Classical
Hobbies: Reading and writing
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
HEADLINE HERE
- I would recommend writing out the text in the body
- And then copy into this box
- It can be as long as you link
- But I recommend you use the bullet point function (see red square)
- Or try to keep the word count down
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- That's about it
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
The five pillars of Islam
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
UAE currency: the story behind the money in your pockets
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Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
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%3Cp%3E1984%20-%20Apple%20unveiled%20the%20Macintosh%20on%20January%2024%3Cbr%3E1985%20-%20Steve%20Jobs%20departed%20from%20Apple%20and%20established%20NeXT%3Cbr%3E1986%20-%20Apple%20introduced%20the%20Macintosh%20Plus%2C%20featuring%20enhanced%20memory%3Cbr%3E1987%20-%20Apple%20launched%20the%20Macintosh%20II%2C%20equipped%20with%20colour%20capabilities%3Cbr%3E1989%20-%20The%20widely%20acclaimed%20Macintosh%20SE%2F30%20made%20its%20debut%3Cbr%3E1994%20-%20Apple%20presented%20the%20Power%20Macintosh%3Cbr%3E1996%20-%20The%20Macintosh%20System%20Software%20OS%20underwent%20a%20rebranding%20as%20Mac%20OS%3Cbr%3E2001%20-%20Apple%20introduced%20Mac%20OS%20X%2C%20marrying%20Unix%20stability%20with%20a%20user-friendly%20interface%3Cbr%3E2006%20-%20Apple%20adopted%20Intel%20processors%20in%20MacBook%20Pro%20laptops%3Cbr%3E2008%20-%20Apple%20introduced%20the%20MacBook%20Air%2C%20a%20lightweight%20laptop%3Cbr%3E2012%20-%20Apple%20launched%20the%20MacBook%20Pro%20with%20a%20retina%20display%3Cbr%3E2016%20-%20The%20Mac%20operating%20system%20underwent%20rebranding%20as%20macOS%3Cbr%3E2020%20-%20Apple%20introduced%20the%20M1%20chip%20for%20Macs%2C%20combining%20high%20performance%20and%20energy%20efficiency%3Cbr%3E2022%20-%20The%20M2%20chip%20was%20announced%3Cbr%3E2023%20-The%20M3%20line-up%20of%20chip%20was%20announced%20to%20improve%20performance%20and%20add%20new%20capabilities%20for%20Mac.%3C%2Fp%3E%0A
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%206-cylinder%203-litre%2C%20with%20petrol%20and%20diesel%20variants%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E8-speed%20automatic%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20286hp%20(petrol)%2C%20249hp%20(diesel)%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E450Nm%20(petrol)%2C%20550Nm%20(diesel)%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EStarting%20at%20%2469%2C800%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
The specs
Engine: 2x201bhp AC Permanent-magnetic electric
Transmission: n/a
Power: 402bhp
Torque: 659Nm
Price estimate: Dh200,000
On sale: Q3 2022