Key takeaways
- The Rise of AI in Search: The future of search is being shaped by AI-driven platforms like ChatGPT and Perplexity, which offer human-like responses. However, competition with Google’s vast market share and its AI Overview feature will likely intensify.
- Challenges for New Search Engines: AI search engines face challenges such as user trust, data accuracy, and legal issues. For example, Perplexity is currently involved in a lawsuit over data usage, which could affect its growth if not resolved.
- Google’s Continued Dominance: Despite increased competition, Google remains deeply embedded in user habits, handling 83.5 billion monthly visits. Its ability to innovate and offer free services, like its AI Overview, makes it a formidable contender in the evolving search landscape.
The future of search may change in unexpected ways
Remember the late 90s, when the battle between Google and Yahoo dominated the search engine landscape? We all know who came out on top, but what was the reason behind Google’s victory? According to Mark Malseed, co-author of The Google Story, it came down to Google’s philosophy: you shouldn’t have to pay to rank higher. Additionally, their algorithms were far more focused on relevancy.
In February 2008, the game could have taken a different turn when Microsoft offered to buy Yahoo for $44.6 billion. Yahoo, however, rejected the offer. But the story didn’t end there. Negotiations continued, culminating in a 2009 agreement in which Yahoo adopted Microsoft’s Bing as its search engine. At the time, some thought this might be the beginning of a comeback.
Yet by 2016, Yahoo’s value had plummeted, with Verizon Communications offering just $4.8 billion to acquire it. The deal was delayed due to a massive security breach affecting three billion Yahoo accounts, and in 2017, Yahoo was finally sold for $4.48 billion.
This story highlights the vulnerabilities of decision-making, timing, and the critical role of trust. Fast forward to today, and there are lessons to be learned from the history of search engines. Now, we stand at the brink of an AI revolution with the potential to reshape the future of search entirely.
Many marketers are excited yet anxious about new competitors emerging. Will AI search engines replace Google and will the future of search be changed forever?
The current battle between SearchGPT, Perplexity, and Google’s AI Overview
With every new wave of technology comes a flood of opinions on its usability and potential to spark the next revolution. ChatGPT certainly made its mark, reaching 100 million users in just two months. Many were excited by its ability to summarise articles and craft stories in an instant. Since then, several competitors have emerged.
Among them, Perplexity has attracted significant attention. Like ChatGPT, it offers human-like responses, but some argue that it generates more accurate information by pulling from a wider variety of sources. While ChatGPT wasn’t originally designed as a search engine, it was created to understand human queries and produce natural-sounding text. However, with the introduction of SearchGPT and plans for future integration into ChatGPT, it’s clear they aim to take a slice of Google’s market share.
Naturally, Google isn’t sitting quietly, hoping for the best. In response, it launched its own AI, though perhaps a bit prematurely. Nevertheless, Google’s AI is a formidable contender. It’s currently rolling out AI overview, a feature that delivers answers directly at the top of Google’s search results. These answers summarise findings from various sources, similar to what ChatGPT and Perplexity offer.
How do they compare against each other?
What sets these search engines apart? Some view SearchGPT as a promising prototype, but it lacks the robustness of Perplexity. While SearchGPT may be faster and more consistent, it doesn’t always deliver the same level of accuracy.
There’s also been criticism of its interface as links are not integrated alongside the text, making it harder to verify sources. Plus, the links it provides often point to less valuable resources, such as Wikipedia, even when users are searching for in-depth articles.
Perplexity, on the other hand, excels in areas like local search, where SearchGPT sometimes falters by providing inconsistent or incomplete results. Both engines struggle with multistep and complex questions, but Perplexity’s “Pro mode” handles these better by breaking searches into more digestible parts.
Given the extra time Perplexity has had to refine its system, many argue it’s currently more user-friendly and might be in a good position regarding the future of search.
Then, there’s Google’s AI overview…
Though it hasn’t fully rolled out yet, it offers many of the same features. It may not be interactive, but it provides an organised and polished search experience, as you’d expect from a company with years of expertise.
And with its potential for further development, Google seems poised to compete aggressively with any challengers looking to grab a share of the search market. Moreover, if everything fails Google also has Gemini which is an interactive AI similar to ChatGPT and Perplexity.
Many are excited about the potential for change in the search landscape, especially with new companies challenging Google’s dominance. However, two significant issues need addressing.
First, while Perplexity might deliver more accurate answers than ChatGPT, it’s involved in an ongoing lawsuit over the data it uses. Some major publications are unhappy about Perplexity leveraging their content without credit or compensation. If Perplexity loses, its bright future could turn dark.
The other looming question is pricing. Both ChatGPT and Perplexity offer subscription models, while Google’s AI overview remains free. Moreover, ChatGPT’s business model has come under scrutiny.
This echoes the early 2000s battle between Yahoo and Google… and we all know how that turned out.
Will Google still be the dominant player in the future of search?
Let’s put things into perspective: Google currently handles 83.5 billion monthly visitors. In comparison, ChatGPT has 2.6 billion visitors (just 3.1% of Google’s traffic), while Perplexity trails with 57.8 million visitors (0.07% of Google’s traffic).
While the new search engine numbers may seem small compared to Google, they’re still significant, especially if they continue to grow. One of the key benefits of these platforms is that their use extends beyond being a platform to search for information. Instead, they also allow users to brainstorm ideas and create content.
Indeed, in the first half of 2024, interest in AI in SEO grew almost 50%. Moreover, interest in AI content has skyrocketed 317% since the launch of ChatGPT.
This is despite AI content generated by platforms like ChatGPT and Perplexity being legally dubious and potentially harming your search rankings unless careful humanisation and restructuring are undertaken. Consequently, Perplexity’s traffic has steadily increased.
Yet ChatGPT has recently experienced a notable decline despite having much higher numbers. In June, their global website traffic fell by 9.7%, with a 10.3% drop in the U.S., and unique visitors decreased by 5.7%. Engagement time also saw an 8.5% reduction.
The significant dip occurred during the summer, leading to speculation that it’s linked to students leaving for vacation, as many use ChatGPT for homework. However, if that alone explains the drop, it raises concerns about the platform’s long-term viability as a competitor to Google.
Some analysts believe the initial hype around ChatGPT is beginning to fade, and there are doubts about whether its subscription model is sustainable in the future of search.
The challenging future for ChatGPT and Perplexity.
While ChatGPT has its enthusiasts and potential for growth with SearchGPT, widespread adoption still faces hurdles, both for ChatGPT and Perplexity. Frequent use of ChatGPT is relatively uncommon, with only 1% of people in Japan using it daily, increasing to 2% in France and the UK, and reaching 7% in the USA.
Additionally, SearchGPT requires users to navigate to a separate site, adding friction compared to the convenience of built-in search bars. Perplexity, meanwhile, is dealing with a lawsuit regarding how it scrapes data, and like SearchGPT, operates on a subscription model.
Google, on the other hand, is deeply ingrained in consumer habits and is the default search engine on most devices. As we’ve seen with “Voice Search,” which was once predicted to be a major threat, changes in user behaviour can be slow. Trust in the data provided is also critical, and this may be the biggest challenge for AI-powered search engines.
The future of search: The way forward
Even with increased competition, the future of search still looks bright for Google. They are deeply ingrained in people’s minds and possess vast amounts of data on our habits and preferences. When we shift our behaviour, Google notices.
For other players to compete, they need to offer something significantly better. People won’t switch to an alternative that’s merely similar to what they already get for free. Think about how hard it is to change your bank or mobile provider. Would you make the switch without a clear and compelling advantage?
That said, search will still evolve rapidly over the next ten years. Trust is a major challenge. Search engines rely on vast datasets, but for them to generate accurate answers, the quality of that data is crucial. ChatGPT, Perplexity, and Google Overview are all keenly aware of this and are likely using Retrieval-Augmented Generation (RAG). This technique enhances a large language model’s output by drawing from relevant, external knowledge bases beyond its training data, ensuring more accurate and authoritative responses.
For marketers, this means increased visibility if you’re linked to high-quality media sources. Adding PR to your marketing budget to secure valuable backlinks will likely be more important than ever. Moreover, building a trusted brand across multiple platforms, especially social media, will be essential for establishing yourself as a reliable source of information.
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