Apple to Add AI-Powered Search to Safari: Should Google Worry?

Apple is planning to introduce generative AI-powered search options to Safari, signalling a potential upheaval in the global search ecosystem and posing a direct challenge to Google’s dominance. The move, disclosed during testimony by Apple executive Eddy Cue in the ongoing US antitrust case against Google, underscores how quickly user habits are shifting toward AI-driven alternatives.

The fallout was immediate. Alphabet shares tumbled 7.3 per cent, wiping out nearly $150 billion in market value, amid investor concerns that the iPhone maker’s pivot could impact one of Google’s most lucrative revenue streams: search ads tied to iPhone usage.

Cue reportedly told the court that Safari searches dropped for the first time last month as users increasingly turned to AI tools for answers—a statement that underscores the pace at which traditional search could be losing ground.

The Stakes: A $20 Billion Default Deal

Google pays Apple an estimated $20 billion annually to remain the default search engine on Safari—roughly 36 per cent of its search advertising revenue linked to Apple devices, according to analyst estimates. That deal is now under the spotlight, with the US Department of Justice proposing a ban on such exclusive arrangements as part of its broader effort to curb Google’s monopoly in online search.

“The loss of exclusivity at Apple should have very severe consequences for Google even if there are no further measures,” D.A. Davidson analyst Gil Luria warned, pointing out that many advertisers concentrate their budgets on Google because of its overwhelming market share.

Generative AI Is Rewriting the Search Playbook

Apple’s plan involves integrating AI search providers like OpenAI and Perplexity AI into Safari—an acknowledgement of how fast generative search models have matured. In April, OpenAI reported over a billion weekly searches through ChatGPT’s browsing capabilities, with more than 400 million weekly active users as of February.

This shift is not lost on Google. After being initially dismissed as lagging behind in the AI race, the company has ramped up efforts to protect its turf. Google rolled out an “AI Mode” on Search and expanded its AI Overviews feature to users in over 100 countries. The feature, which surfaces AI-generated summaries above standard links, now includes ads, creating a new monetisation layer for its core business.

The Antitrust Context

The legal battle between Google and US regulators is set to become a defining moment for the future of online search. The case challenges whether Google’s default agreements with platforms like Apple stifle competition, and the outcome could reset how users interact with the web.

In court, Google maintained that it continues to see an increase in search queries overall, including those originating from Apple devices. But the subtext is clear: even a slight decline in user reliance on Google Search—especially on iPhones—could have outsized implications.

What Comes Next

Cue’s comments point to a broader shift underway. Apple, which has so far kept its AI ambitions quiet, is now actively reshaping how users search the web. With alternatives like Perplexity and ChatGPT increasingly part of the mainstream, and Google forced to innovate defensively, the next chapter of search will likely be more fragmented, AI-driven, and platform-contingent.

And with nearly $20 billion in default payments on the line, the real disruption may not be what users search for—but where they choose to start.

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