The news: At Google I/O 2025, Alphabet CEO Sundar Pichai unveiled AI Mode for Search, now rolling out to all US users on Google Search, per Bloomberg. The feature will soon merge into AI Overviews on the main results page.

The new search chatbot aims to modernize Google’s core product and fend off rising AI-first rivals like OpenAI and Perplexity.

“This really is building the future of search,” said Liz Reid, vice president of Google Search. “It creates this time where you can truly ask anything, and that searching starts to feel really effortless.” 

Google makes AI the core of search: The generative AI (genAI) feature will let users interact directly with Google’s AI models for complex queries and follow-up questions, similar to ChatGPT. But what’s behind the move?

• Google is evolving search with AI—not replacing it (yet). By putting AI alongside traditional results, Google can highlight its capabilities and attract users while homing in on the 57.8% of US consumers who prefer Google Search over standalone AI tools, according to Pearl. 
• AI search competition is heating up. OpenAI, which is reportedly eyeing Chrome, now has 400 million weekly active ChatGPT users. Perplexity logged 159.7 million searches in March—up 204.7% YoY, per Exploding Topics.
• Placing AI Mode directly in Search makes it sticky. Google Search users don’t need to open another browser window or app to access AI, keeping users in Google’s ecosystem.

Our take: By making AI Mode a core part of the experience, Google is betting it can cater to the demand for AI without alienating its massive base, but there are risks for hallucinations and factual errors which could drive users toward competitors.

Google’s shift signals a new paradigm for marketers and publishers to optimize for AI interactions, not just blue links.