At its annual developer conference, Google unveiled a sweeping update to its search engine, reinforcing its all-in commitment to artificial intelligence
May 21, 2025
Central to the announcement is a new “AI Mode”, now rolling out broadly in the U.S., which transforms search into a conversational, expert-like interaction. The update also integrates Gemini 2.5, Google’s latest and most powerful AI model, into its core search infrastructure. While aimed at enhancing user experience, these shifts are also expected to significantly alter the flow of traffic across the web—potentially reducing visits to external sites.
Key takeaways
- AI Mode goes public: Google’s new “AI Mode” makes search feel more like chatting with an expert. It’s now live for all U.S. users, following a short test phase.
- Search gets smarter with Gemini 2.5: Google is integrating its latest AI model, Gemini 2.5, into its search algorithms, powering deeper, more nuanced responses.
- New experiments ahead: Future features include live video search, automatic booking (like concert tickets), and “deep search” for complex queries.
- Smart glasses are back: Google previewed a return to AI-powered eyewear via Android XR glasses built with Gentle Monster and Warby Parker.
- AI overviews are changing search behavior: About 1.5 billion people now use AI overviews, which sit atop traditional results. However, this is contributing to a 30% drop in click-through rates to other websites, raising concerns for publishers.
- Rising competition spurs rapid rollout: With pressure from AI-powered alternatives like ChatGPT and Perplexity, Google is accelerating its AI deployment to retain dominance.
- Ultra AI subscription: Google is launching a $250/month “Ultra” plan with 30TB of storage—far beyond its current $20/month “AI Pro” tier.
- Privacy and power concerns: Google’s AI mode itself admits it could make the company even more powerful—and warns publishers about reduced traffic.
- Legal pressure remains: Amid monopoly lawsuits, Google argues that the rapid evolution of AI is reshaping the competitive landscape organically.
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