Apple Eyes AI Search, Hinting At A Shift From Google Dominance

Apple Inc. is “actively exploring” a major overhaul of its Safari web browser to prioritize AI-driven search engines—a significant industry shift accelerated by the possible conclusion of its long-standing deal with Google.

Eddy Cue, Apple’s senior vice president of services, revealed the information on Wednesday while testifying in the U.S. Justice Department’s antitrust case against Alphabet Inc. Central to the case is a roughly $20 billion annual agreement that designates Google as the default search engine in Apple’s browser. A ruling against the deal could compel the companies to dissolve the partnership, potentially transforming how the iPhone and other Apple devices function.

Safari’s Shift and Apple’s Integration Plans

AI is already gaining traction among consumers despite the broader disruption. Cue mentioned that Safari experienced a decline in search activity for the first time last month, a trend he linked to the growing use of AI tools. He expressed the view that AI-driven search platforms—such as those developed by OpenAI, Perplexity AI Inc., and Anthropic PBC—are likely to overtake traditional search engines like Google. According to Cue, Apple plans to eventually integrate these AI search options into Safari.

“We’ll include them as options, though they likely won’t be set as the default,” Cue said, noting that the technology still needs refinement. He mentioned that Apple has had some conversations with Perplexity specifically.

“Before AI came into the picture, I didn’t see the alternatives as viable,” Cue added. “But now, with new players approaching the challenge differently, there’s much more potential.”

AI’s Impact on the iPhone and Apple’s Partnership with Google

The upcoming change marks a major shift for the iconic iPhone and a company with over 2 billion active devices. Since the launch of Apple’s first smartphone in 2007, users have relied on Google for web searches. Now, consumers will step into a new landscape dominated by AI from various companies.

Investors viewed the testimony as a negative sign for both Alphabet and Apple, which might have to end a profitable partnership.

On Wednesday, Alphabet’s stock dropped as much as 8.7%, pulling the broader market down with it. Apple shares also declined following Cue’s remarks, falling by up to 2.7%. The S&P 500 briefly turned negative, wiping out an earlier gain of more than 0.5%.

Apple’s AI Strategy

Currently, Apple offers OpenAI’s ChatGPT within its Siri assistant and plans to incorporate Gemini, Google’s AI search tool, later this year. Cue mentioned that Apple has also considered Anthropic, Perplexity, DeepSeek (from China), and Grok (from Elon Musk’s xAI). He noted that the agreement with OpenAI allows Apple to integrate other AI providers, including its own, into its operating system.

Before ChatGPT was selected for Apple Intelligence in iOS 18 last year, there was a “bake-off” with Google, Cue explained. He noted that Google had presented a term sheet with several conditions that Apple couldn’t agree to, unlike the terms it accepted with OpenAI.

Cue also mentioned that technology is evolving rapidly, and people may not even use the same devices in a few years. “You might not need an iPhone 10 years from now, as crazy as that sounds,” he said. “True competition arises when technology shifts. These shifts create opportunities, and AI is a new technological shift that’s opening doors for new players.”

AI Search Evolution

According to Cue, AI companies will need to improve their search indexes to advance. However, even if that doesn’t happen immediately, their other features are so superior that people will still make the switch.

“There’s enough money and enough big players now that I don’t see how this doesn’t happen,” he said, referring to the shift from traditional search engines to AI-driven ones.

Cue also mentioned that large language models—the foundation of generative AI—will continue to evolve, encouraging users to change their behavior.

However, he still believes Google should remain the default search engine in Safari, admitting that he has been concerned about losing the revenue-sharing arrangement with Google. He emphasized that Apple’s current agreement with Google offers the most financially favorable terms.

Last year, the companies expanded their partnership to include Google Lens as part of the Visual Intelligence feature on the latest iPhones. This feature allows users to take photos and use Google’s AI to analyze them. Cue also revealed that Apple’s agreement with Microsoft’s Bing, which is a non-default search option in Safari, has recently been adjusted to a year-to-year contract.

Apple’s own AI technology has fallen behind its competitors. The company lacks an AI search engine and has had to delay significant updates to Siri that would have used personal data to enhance responses. Apple’s annual developer conference, starting on June 9, will focus on introducing updates to Apple Intelligence, its AI platform.

Read the original article on: Tech Xplore

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