TENCENT(HK:00700) Di Yi Cai Jing·2025-05-20 12:06Core Viewpoint - The transition from traditional search engines to AI search is ongoing, with various companies exploring how to adapt their advertising models in response to this technological shift [1][9]. Group 1: AI Integration in Browsers - Apple plans to introduce AI features in its Safari browser, while Baidu has launched its AI search, DeepSearch [1]. - QQ Browser has upgraded to an AI browser with the introduction of QBot, utilizing Tencent's mixed model and DeepSeek [1]. - The upcoming Google I/O developer conference is expected to address advancements in AI search [1]. Group 2: User Engagement and Market Dynamics - Eddie Cue from Apple noted a decline in Safari's search volume, attributed to increased AI usage, while QQ Browser reported a rise in daily active users (DAU) during AI feature testing [3]. - Google’s market share in global search engines has fluctuated between 89% and 91%, indicating that it has not been significantly impacted by AI [3]. - The current consensus is that AI search and traditional search engines are complementary, with traditional search engines effectively addressing user needs [4]. Group 3: Commercial Viability and Advertising Models - AI search has not yet replaced traditional search engines due to immature business models, as many AI search products do not currently generate advertising revenue [9]. - Google reported that over 70% of its revenue comes from advertising, with search ads growing by 9.8% year-over-year in Q1 of FY2025 [9]. - Tencent's Q1 report highlighted that AI capabilities have positively impacted its advertising business, enhancing user-advertiser matching efficiency [10].