How Google Dodged the AI Search Collapse | PYMNTS.com

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How Google Dodged the AI Search Collapse | PYMNTS.com

By PYMNTS
Publication Date: 2025-11-24 23:31:00

Google Search was supposed to lose ground in the artificial intelligence (AI) era, but Alphabet’s third-quarter 2025 earnings tell a different story. Alphabet said Search-and-other advertising revenue rose about 15% to more than $56 billion in Q3, defying expectations that generative AI systems would erode its core business.

Instead of being replaced by large language model (LLM) chat interfaces and AI browsers, Search stayed robust by embedding its Gemini model in the results page, improving ad performance via AI models, and holding onto the commercial intent that chatbots still struggle to replicate.

Google Embedded AI, Preserving Search Behavior

The prevailing assumption in 2024 was that LLM-powered interfaces such as ChatGPT and Claude would pull queries away from Google. Users were already leaning on them for summarization, drafting, research, and general exploration. Many believed that the search bar would recede in favor of the chat box.

Yet Google, despite stumbling…

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