Google’s grip loosens: Is AI the search disruptor?

Tools like ChatGPT and Perplexity are already changing how users navigate the web, challenging Google’s algorithmic dominance.

By
  • Indrani Bose,
| April 24, 2025 , 8:40 am
The emergence of AI-driven alternatives such as ChatGPT, Perplexity, and even Google’s own Gemini is ushering in a new era where traditional search is no longer the sole entry point to the web. (Photo: Unsplash)
The emergence of AI-driven alternatives such as ChatGPT, Perplexity, and even Google’s own Gemini is ushering in a new era where traditional search is no longer the sole entry point to the web. (Photo: Unsplash)

With Google’s global search market share slipping below the 90% mark, the foundations of digital discovery and advertising are shifting. The emergence of AI-driven alternatives such as ChatGPT, Perplexity, and even Google’s own Gemini is ushering in a new era where traditional search is no longer the sole entry point to the web.

Gowthaman Ragothaman, media, advertising and marketing professional and CEO of Aqilliz, captures the moment candidly. “Yeah, 100%. All our engagements with publishers clearly indicate that the effectiveness of advertising is dropping, for sure. So far, search was the primary route through which readers and viewers reached websites. That disruption is now leading to a decline in both performance marketing capabilities and audience reach. It’s definitely a matter of concern.”

Tools like ChatGPT and Perplexity are already changing how users navigate the web, challenging Google’s algorithmic dominance. “If you look at tools like Perplexity, ChatGPT, or even Google’s own AI features, now when you search on Google, it by default gives you AI-generated recommendations. It’s almost like a cookie replacement—with new modeling that recommends what to read, where to go, or what to write,” Ragothaman adds.

This has created a more democratized search environment. “Earlier, Google’s algorithm might have nudged users toward specific destinations, but now tools like ChatGPT and Perplexity (and others in the future) are helping distribute search attention more evenly. This will definitely impact how planners think, execute, and measure outcomes.”

As new disciplines like “agentic engine optimization” emerge, the old SEM-SEO playbook is getting rewritten. “There will be a restructuring in how ad spend is allocated, and yes, Google is definitely on the receiving end of that shift.”

Read more: Google ads costs soar: CPCs up 30%-100% across key industries, brands are fighting back

Rishabh Mahendru, VP, Client Success & Growth at AdLift, elaborates on the tactical shifts underway. “Search behavior is getting more conversational and intent-driven—and we’re adapting strategies accordingly. Instead of focusing only on traditional keyword optimization, we now analyze the kinds of prompts and questions users are posing to LLMs like ChatGPT or Perplexity. That means creating content that answers complex, multi-step queries in a structured, trustworthy way.”

He adds, “Structured data (schema markup), rich FAQs, and authoritative content aligned with EEAT principles have become critical. Also, since tracking traffic from LLMs is a current blind spot, we’re building internal models to estimate their impact and are actively working on new ways to measure engagement across AI surfaces.”

“We’re getting a lot more questions from clients about how they can show up on tools like ChatGPT, Perplexity, and even voice search platforms,” Mahendru notes. “Google algorithms work on keyword searches, and its AI Overviews have a noticeable impact on how we approach search ads and SEO copy for clients. Our strategy now includes optimizing for inclusion within the AI Overview—by creating content that’s credible, structured, and relevant enough to be cited directly.”

On the ad side, Mahendru is realistic. “For informational queries, generative AI responses can reduce CTRs—users often get their answers right on the search results page. But for commercial or transactional queries, AI overviews aren’t triggered as frequently, yet. Google still makes its money from clicks, so ads remain central. But we’re preparing for a world where position zero might include not just SEO, but AI-summarized brand mentions. And that’s where we want our clients to win.”

A Push Toward Context and Trust

The ripple effects are evident in how brands and media buyers are reacting. “With user behavior shifting and privacy taking center stage, brands are exploring beyond Google to connect with audiences in more contextual and less saturated spaces,” says Vishal Singh, Country Head at Xapads Media. “There’s a clear appetite to test and learn across these emerging ecosystems as they offer fresh opportunities for intent-driven engagement and potentially lower competition.”

The growing appeal of contextual advertising—which is projected to reach USD 468.17 billion by 2030—reflects this shift. “Brands are recognizing that search effectively captures existing demand, but it’s contextual advertising that has the power to create new demand,” Singh adds.

As Singh observes, “media buyers are prioritizing meaningful customer relationships over sheer scale. Today, brands are investing in platforms that offer both visibility and trust—because in this evolving ecosystem, it’s not just about being seen, it’s about being believed.”

New Players, New Opportunities

For publishers and advertisers alike, AI tools are both a disruption and an opportunity. Sahil Chopra, Founder and CEO of iCubesWire, says, “It doesn’t seem fair with publishers backing up the web with content for years, and now that AI has learnt to summarize the work in a blink of an eye, publishers get nothing out of it. However, some of the newer AI platforms are coming up with ways to build sharing models from the get-go. It might not seem like a big deal now but will prove instrumental in shifting trust and loyalty in the long run.”

Chopra also emphasizes, “The door’s open now more than ever. Google’s always been the leader, but if Bing or OpenAI can offer more transparency, better revenue sharing, or just a fresher experience for advertisers and publishers, marketers are definitely going to make the move. This kind of shift makes space for other players to build something meaningful, especially if Google’s not as dominant as before. A few years back, testing new platforms was more about let’s be an early adopter of this trend. Now, it’s become a go-to survival strategy. Juggling between privacy changes and platform shifts, one can’t just rely on one or two channels. Diversification isn’t just smart anymore, it’s the way to move forward.”

The Attribution Puzzle

As new AI-driven search tools gain traction, traditional attribution models are becoming obsolete. “Tools like ChatGPT, Perplexity, and even Google’s own Gemini are steadily drawing users away from traditional search behaviors,” Mahendru notes. “This shift has begun to reflect in attribution models as well… brands need to broaden their measurement frameworks.”

This is echoed by Gaurav Arora, Co-Founder of Social Panga. “The way people search is changing. It’s less about scrolling past ads and more about having a conversation — with GPTs, new engines, and soon AI agents.”

He notes, “More users are showing up through direct or ‘untrackable’ sources — it’s making attribution a bit blurrier. As GPTs and AI agents become more common, we’ll eventually see new ways to track and measure those interactions too.”

Caution Amid the Excitement

Despite the buzz, not everyone is ready to shift ad dollars away from Google just yet. “At this stage, Google remains too critical for advertisers to move away from,” says Raj Swaminathan, Sr. Director–Revenues and New Initiatives, Globale Media. “Brand safety is the top priority for most companies, and Google’s platform has proven itself over many years.”

Swaminathan views platforms like ChatGPT and Perplexity as tools primarily for B2B functions—research, content creation, and productivity but not yet for consumer-facing advertising. “From a B2C standpoint, users searching on these platforms are often driven more by curiosity than by intent to transact.”

For now, commerce search remains in the hands of platforms like Amazon, Flipkart, Zepto and Blinkit. “So, while AI search holds promise, at this point, it remains a space to watch rather than a space to immediately shift performance budgets into,” Swaminathan cautions.

As AI reshapes how we seek and find information, traditional players like Google remain powerful, but they’re no longer unchallenged. And as brands reconsider how and where they reach their audiences, what’s becoming evident is that in a world where search is splintering, trust, context, and measurement are the new cornerstones of effective advertising.

Read More: How Google’s ad tech power skews transparency and competition in India

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