Feng Huang Wang·2025-05-07 23:47Core Insights - Apple is considering integrating an AI search engine into its Safari browser, which has led to a significant drop of over 7% in Google's stock price [1] - Eddy Cue, Apple's Senior Vice President of Services, testified that Safari's search volume declined for the first time last month due to the rise of AI usage [1] - The potential threat to Google's keyword search and advertising business from generative AI was highlighted, suggesting that the current growth of Google's ad business may not be sustainable [1] Group 1 - Apple's move to incorporate AI search in Safari indicates a shift in user behavior towards AI search providers like OpenAI, which could replace traditional search engines like Google [1] - The decline in search volume for Safari suggests that generative AI is beginning to impact user preferences, which could have long-term implications for Google's search and advertising revenue [1] - The historical context of Yahoo's advertising business decline serves as a cautionary tale for Google, illustrating that even with initial growth, a shift in user preference can lead to significant revenue drops over time [2] Group 2 - The current lack of advertising services from generative AI providers means that Google's ad business remains the preferred choice for advertisers, but this may change as AI services evolve [1] - A substantial decline in search volume is necessary before Google's advertising business experiences a tangible impact, indicating that the effects of generative AI may not be immediate [1] - The comparison to Yahoo's advertising history emphasizes the importance of monitoring user trends and adapting to changes in the competitive landscape [2]