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Google Is in Trouble, Deep

computerworld.com5 points3 comments
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Google’s aggressive push into AI is undermining the search and advertising businesses that made it powerful, argues Steven Vaughan-Nichols. AI Overviews and AI Mode answer questions without sending users to websites, cutting traffic for publishers and businesses that depend on search. Search Engine Land reports that three-quarters of site home pages lost traffic over the past year, while Ahrefs found that search results featuring an AI Overview correspond with a 58% lower average clickthrough rate for the top-ranking page. Reddit’s CEO also said Google referrals had fallen meaningfully as users stopped at AI-generated results. Less traffic weakens the value of ads and may lead advertisers to spend less, even as advertising remains Google’s main source of revenue.

The piece connects those concerns to slowing growth and a sharp decline in Alphabet’s share price: search ad revenue grew 12%, below analyst expectations, and shares fell about 18% in a month, including a one-day loss of roughly $500 billion in market value. It also criticizes Google for requiring schools to enable its AI tools in K-12 software as a condition of continued access to Search. Because Chromebooks are widely used in schools, the policy could expose many students to tools that teachers and privacy advocates consider unsafe or unwanted. The central warning is that Google is damaging relationships with advertisers, publishers, and schools by prioritizing AI adoption over their needs, making reliance on its services and advertising increasingly risky.

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