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Google Revamps Search with AI Mode Amid Rising Competitive Pressures

At its 2025 I/O developer conference, Google unveiled a sweeping overhaul of its core product: Search. With rivals like OpenAI and Perplexity innovating rapidly and users showing growing interest in generative AI alternatives, Google’s revamped search experience — featuring AI Mode, agentic capabilities, and live video query integration — signals a critical pivot in the company’s strategy to defend its long-held dominance.

Google AI search
Google AI search

From Search Engine to AI Assistant

The headline change is AI Mode, a chatbot-style interface now being rolled out to all U.S. users. Unlike traditional search, which returns a ranked list of links, AI Mode engages users in a conversational experience, delivering synthesized answers and even performing complex tasks on their behalf. Google’s new AI-powered Search represents a major conceptual shift from search as a results aggregator to search as an intelligent agent — a trend shaping the future of online interaction.

Features of AI Mode include:

“Query fan-out” technique that breaks questions into subtopics and searches them in parallel.

Deep Search for generating fully cited, in-depth reports.

Agentic capabilities that can perform real-world tasks (e.g., ordering tickets).

Search Live, using live camera input to answer real-time visual queries.

These are bold moves aimed not just at matching OpenAI’s ChatGPT or Perplexity’s conversational search models — but surpassing them by embedding Google’s vast ecosystem (Maps, YouTube, Shopping, etc.) into a unified AI layer.

Why This Matters: Competitive and Strategic Context

Google’s overhaul comes amid serious competitive threats and regulatory challenges:

OpenAI and Perplexity are gaining traction, particularly among younger and more tech-savvy users who find traditional web search too slow or fragmented.

Apple’s own SVP Eddy Cue admitted that Safari saw its first decline in Google search queries in April 2025 — blaming user migration to ChatGPT.

Microsoft, a major OpenAI backer, is also doubling down on “agentic AI” in its products, making this a multi-front battle.

On the regulatory front, Google faces U.S. Department of Justice lawsuits that may result in structural remedies, including a potential forced divestiture of Chrome. This casts a shadow over any expansion strategy and increases pressure to demonstrate that innovation — not monopoly power — is keeping users loyal.

A More Interactive, Personalized Future for Search

With these upgrades, Google is betting big on multimodal and interactive search—where voice, text, video, and even real-world actions converge into a single AI interface. Features like Search Live, for example, make it plausible to imagine a future where you simply point your phone at a broken appliance and get live repair instructions.

Google also emphasized scale: both AI Overviews and Google Lens boast 1.5 billion monthly users, with visual search growing 65 percent year-over-year. This level of adoption gives Google a major data and distribution advantage over newer players—even if the user experience now faces stiffer competition.

Challenges and Open Questions

Privacy and trust: As agentic features become more autonomous—filling out forms and completing purchases—users may grow wary of handing too much control to an AI, especially one managed by a company under regulatory scrutiny.

Content quality and citation: The shift from link-based results to synthesized answers risks diminishing web traffic to content creators unless Google finds ways to preserve visibility and credit.

Monetization model: Will ad-supported AI answers be credible, or will Google need new monetization models for agentic and conversational interfaces?

Execution risk: Past attempts (e.g., Google Assistant) haven’t lived up to their transformative promises. Sustained user adoption will require both flawless UX and reliable AI outputs.

Bottom Line

Google’s new AI-powered Search repositions the company at the cutting edge of AI-enhanced user experience, just as its supremacy faces unprecedented threats. The pivot to agentic and multimodal interaction is as much a defensive play as it is a forward-looking vision.

With the global search market on the cusp of transformation, Google’s latest updates show that the company is not only aware of the shifting tides — it’s trying to shape them. Whether users embrace the new AI-first search paradigm will determine if Google retains its crown or becomes a legacy brand overtaken by a new generation of AI-native competitors.

InfotechLead.com News Desk

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