Apple Eyes AI Search Integration in Safari, Threatening Google’s Search Dominance

Apple is reportedly exploring a major shift in its Safari browser by integrating AI-powered search tools, a move that could pose a serious challenge to Google’s long-standing dominance in the search market, according to Bloomberg.

The development comes as Apple executive Eddy Cue revealed during a U.S. Department of Justice antitrust trial involving Google’s parent company, Alphabet, that search activity through Safari had declined recently – a change he attributed to users increasingly relying on AI tools instead of traditional search engines.

Google currently pays Apple an estimated $20 billion annually to remain the default search engine on Safari, a position that gives it access to a vast share of mobile users and contributes significantly to its advertising revenue. Analysts estimate this amounts to about 36% of Google’s search ad income from Safari traffic alone.

However, Apple’s growing interest in integrating AI-driven search options – including partnerships with emerging players like OpenAI and Perplexity – signals a potential rebalancing of power. Apple has already announced a deal to bring ChatGPT to its Siri voice assistant, while Google is reportedly seeking to incorporate its Gemini AI system into upcoming Apple devices.

Cue reportedly acknowledged that Apple will likely include AI search providers such as OpenAI and Perplexity in Safari’s search options, although Google may retain its default status – for now. “We will add them to the list – they probably won’t be the default,” Cue was quoted as saying.

News of the shift triggered a market response, with Alphabet shares tumbling 6% and Apple stock falling about 2%. Neither company, nor the Department of Justice, responded to Reuters’ requests for comment.

Industry analysts warn that if Apple ends its exclusive arrangement with Google, it could have major repercussions. “The loss of exclusivity at Apple should have very severe consequences for Google,” said Gil Luria, an analyst at D.A. Davidson. “If other viable alternatives emerge, many advertisers could redirect a significant portion of their budgets away from Google.”

The potential shake-up arrives at a time when Google is already battling to reassure investors that its AI investments will continue to drive growth in its core ad business.