AI overviews are increasing engagement, but challenges to monetization remain
Jul 25, 2025
Google’s search engine has so far proven resilient in the AI era, leveraging its Gemini-powered “AI Overview” feature to drive more searches and boost revenue. While these features increase engagement, they also pose challenges for click-through rates, leaving Google to balance user satisfaction with advertiser value.
Key takeaways
- AI overview adoption surges: Google’s Gemini-powered overviews now have over 2 billion monthly users, up from 1.5 billion last quarter.
- Search engagement increases: Search impressions grew 49% year-over-year since the feature’s launch, according to BrightEdge data.
- Revenue hits a record: Search revenue rose 12% year-over-year in Q2 to $54.2 billion, exceeding analyst expectations.
- Click-through challenge: While impressions are up, users click fewer links when AI overviews provide direct answers, affecting ad performance.
- Competitive pressures: Startups like Perplexity and OpenAI are developing AI-infused browsers, potentially challenging Chrome and Google’s ad model.
- Defensive strategy: Google plans to invest $85 billion in 2025 capital spending and continue embedding AI across products, following a track record of adapting to past disruptions.
- Long-term risks: The company faces growing antitrust scrutiny and must prove AI-driven answers still deliver returns for advertisers.
Get the full story at The Wall Street Journal (subscription required)
