OpenAI's ChatGPT Challenges Google's Dominance in Search

OpenAI‘s chatbot, ChatGPT, is making notable strides in the online search market, raising questions about Google‘s well-established dominance.

What Happened: A recent survey by Evercore ISI revealed that about 5% of respondents preferred ChatGPT for their search queries, a considerable rise from just 1% in June. Notably, this increase is predominantly driven by younger users, particularly Millennials.

Google, however, still holds the majority of the search market with 78% of individuals selecting it as their primary choice, which shows a small drop from 80% in June. Even a slight change in market share is significant in the search industry, a sector that is crucial to Google’s advertising revenue.

The survey findings indicate that ChatGPT’s growth could signal a shift in Google’s long-standing position as the main entry point to the internet.

OpenAI’s innovative generative AI technology is changing how people access and interact with digital information, sparking important discussions about the sustainability of Google’s search leadership.

In October, OpenAI introduced a comprehensive search feature for ChatGPT, further solidifying its presence in the market. Additionally, the company formed a partnership with Apple Inc., which places ChatGPT in many iPhones, positioning it as a direct competitor to Google.

Despite this upward trend for ChatGPT, Google still appears to be leading. According to data from Evercore’s survey, Google’s AI features, such as Gemini and AI Overviews that streamline search results, were found to be more effective by 71% of Google users.

Why It Matters: The growing popularity of ChatGPT may suggest a fundamental change in the landscape of online search. Google’s supremacy has been largely unchallenged for many years, but OpenAI’s developments indicate that a new rival is emerging.

The collaboration with Apple and the rollout of a full search feature for ChatGPT are tactical maneuvers aimed at expanding its market share.

However, it remains to be seen whether ChatGPT can generate profit from search inquiries as successfully as Google has, an essential element for its long-term achievement.

OpenAI, ChatGPT, Google