Beyond Blue Links: Can AI browsers erode Google’s search dominance?

For decades, ‘search’ wasn't just a verb, but a shrine of acknowledgement to Google’s all-knowing, all-advertising godhead. Those blue links? Holy scripture. But here we are in 2025, watching that once-mighty temple develop hairline cracks, thanks to a few feisty AI upstarts armed with smarter brains and zero patience for clutter.

Globally, search advertising is a $300 billion market in 2025 and is expected to comfortably sail past that number by the end of the year, with Google historically controlling more than two-thirds of it (their first quarter earnings for 2025 rang in at a cool $90 billion). In India, the search advertising market is experiencing substantial growth, with projections indicating a revenue of Rs 20,538 crore in 2025. But new consumer behaviors are quietly reshaping this foundation. Today, nearly 30% of Gen Z and millennial users worldwide start their online journeys directly in AI tools like Open AI’s ChatGPT instead of typing a Google query.

This change is more than a UX tweak; it’s a direct assault on Google’s prized click-through rates, which Mathias expects to drop by at least 15–20%. For a company still dependent on advertising for nearly 80% of its revenue, this is no minor headache.

Lloyd Mathias, business strategist and Independent Director, believes Google should be “worried" about the growing dominance of AI-driven search overviews and agentic browsers. He explains that Google’s core business has long depended on users clicking through multiple links, generating significant ad revenue along the way.

However, with AI overviews now providing direct, comprehensive answers, user behavior is fundamentally shifting. “Earlier, you typed something and got a prioritised list of links. Today, AI gives you a summary right there, so you don’t go deeper into the page,” he says.

Perplexity’s Comet, a newly announced browser revealed just yesterday, is an early indicator of this shift. While user numbers are still under wraps, its launch highlights a clear transition: from link-heavy exploration to fast, answer-focused experiences. OpenAI’s rumored browser remains unreleased, but ChatGPT already commands between 800 million and 1 billion weekly active users, and over a billion queries a day, evidence that traditional search is no longer the only game in town.

Gopa Menon, veteran digital marketer and co-founder & COO of Theblurr, highlights a major shift in how search advertising might evolve in an AI-powered world. Traditional search advertising depends on users clicking through multiple results and visiting websites where ads can be displayed. However, AI-driven search tools change this by delivering direct answers upfront, reducing the need for clicks and visits. “This creates what I call the 'answer paradox' — better search experiences may actually undermine the economic model that funds them,” he explains.

Menon believes Google should definitely be concerned, but “They are also scaling up their AI story and have several advantages: massive data infrastructure, established advertiser relationships, and deep pockets for R&D.” Yet, he also notes that Google faces a classic innovator's dilemma: pushing AI too aggressively could eat into its core advertising revenues.

In contrast, Perplexity and OpenAI have the upper hand when it comes to building AI-first experiences from scratch. They are free from legacy business constraints and can test out new monetization approaches like subscriptions, premium services, or native ads that feel more seamless and less intrusive.

Shradha Agarwal, Co-founder and CEO of Grapes Worldwide, reinforces this view sharply: “The future of search will not be built on blue links.” She points out that Google already lost ground in product searches to platforms like Amazon, Flipkart, and Nykaa, places where “intent meets checkout in one tap.” Now, informational and advisory searches are starting to slip too, as consumers prefer direct, ad-free answers from AI.

“What is left for Google? A shrinking middle ground. Niche queries, older users, and default browser habits. Not exactly fertile ground for ad revenue,” Agarwal says. She stresses that brands are moving from chasing keywords to mastering “answer optimisation”, ensuring they show up organically inside AI-generated summaries rather than simply fighting for top spots on a results page. “Where does your brand show up in an AI summary? How do you get cited by a generative model? That is the new game,” she explains.

While Agarwal doesn’t foresee a sudden collapse, the erosion has begun. “Spends on Google will not vanish overnight. People still use it. We all still go there,” she acknowledges. But in India, brands have already trimmed Google spends by up to 8% last quarter, while investments in LLM-focused content strategies rose nearly 40%. VP-Marketing and Brand Solutions at Lemma Merlin Coutinho's perspective, coming straight from the AdTech trenches, is one of dynamic co-existence, not market cannibalization. "Think back to the early days of streaming: remember when everyone expected YouTube to fade away as Netflix, Disney+, and countless other OTT platforms emerged? Yet, YouTube's ad revenue didn't just survive; it thrived, often seeing double-digit growth year-overyear. Why? Because it served a distinct user need and evolved its offering," she says.

"We're seeing a similar playbook here. While AI-first players like Perplexity and OpenAI offer impressive direct answers, particularly for informational queries, they aren't fully replacing the fundamental user intent for
discovery and transaction that drives Google's core business," she says, adding Google itself reported a nearly
10% increase in Search revenue to $50.7 billion in Q1 2025, with AI Overviews actually boosting engagement for
over 1.5 billion users monthly.

Jaspreet Bindra, CEO of AI&Beyond, takes a slightly more measured tone. “Search is no longer just about links
and keywords; it is becoming a conversation,” he notes. The implication? Brands must embed themselves inside these new conversational flows if they want to stay relevant.

Bindra cautions that while Google should be “concerned,” it need not panic, yet. With decades of user data and habitual behavior in its corner, Google remains formidable. But even these advantages are under siege: Google’s share of global initial searches has slipped from 92% two years ago to 82% today.

Mathias believes Google will inevitably pivot to include ads within AI overviews. “They'll have to find a way to incorporate Google Ads into the AI mode,” he says. Indeed, early tests inside Google’s Gemini platform suggest experiments with “sponsored summaries” and context-aware integrations. Whether users will embrace ads inside AI-generated answers, however, is still an open question.

Looking forward, brands are at a crossroads. One path clings to traditional SEO and search advertising; the other embraces AI-first environments where visibility means becoming part of the answer itself.

The decline of the blue link isn’t a dramatic crash but a slow, persistent erosion. Users today want immediate, precise solutions, and not have to wade through an ocean of options. As Agarwal warns, “If you are not reallocating attention, you are already behind it.”

Ultimately, the winners in this new era won’t be those with the most backlinks or the fattest keyword war chests. The champions will be the ones who learn how to live inside an answer, rather than fight to be found among a thousand links.

For Google, the question is no longer just how to adapt, but whether it can retain its place as the default gateway to the internet. As Mathias says plainly, “Google may not necessarily be the default option anymore.” In a world hurtling towards AI-powered discovery, even the strongest fortresses need a new blueprint.

Looking ahead, Menon outlines three possible futures: a hybrid model blending AI and traditional advertising, a subscription-driven future offering ad-free AI search, or a fragmented ecosystem catering to different user needs and demographics. “I feel success is for those that can balance user experience with sustainable business models while navigating the complex challenges of AI accuracy and trust," he concludes.