As AI chatbots like OpenAI's ChatGPT, Anthropic's Claude, and Perplexity reshape how users search for information, brands are adjusting their strategies to maintain visibility in this new search environment, which is increasingly displacing traditional search engines like Alphabet Inc.'s GOOG GOOGL Google.
What Happened: In a shift that threatens Google's dominance, brands are adopting new strategies to ensure they remain visible in the results generated by AI chatbots, reported the Financial Times on Sunday.
Instead of clicking through to websites, many users now rely on AI's synthesized responses, which have decreased web traffic by up to 25%, the report noted, citing research from consultancy Bain.
Taking cognizance of this development, companies like Brandtech and Profound have developed tools that monitor how often brands appear in AI-driven responses, providing insights on how businesses can optimize for these models.
"This is about much more than just getting your website indexed in their results. This is about recognizing large language models as the ultimate influencer," said Jack Smyth, partner at Brandtech.
Brandtech has developed a “Share of Model” tool that helps brands analyze their visibility in AI search results and provides recommendations for optimizing website text and images.
Profound, which secured $3.5 million in seed funding in August, led by Khosla Ventures, offers a data analytics platform that enables brands to monitor popular industry queries and assess their standing within AI search results, the report said.
Why It's Important: On Thursday, Alphabet posted first-quarter revenue of $90.23 billion, a 12% rise compared to the same period last year, beating Wall Street's expectation of $89.2 billion. Revenue from Google Search reached $50.7 billion, up from $46.2 billion a year earlier.
The strong performance helped ease investor concerns about rising competition from AI chatbots like Elon Musk's Grok and fears that Google's own Gemini chatbot and AI-generated summaries might be cutting into its traditional ad-driven search traffic, the report said.
Deepwater Asset Management's Gene Munster previously said that Google's existing search format, which blends AI overviews, blue links, and organic results, may fall short against newer, more streamlined search experiences offered by models like Grok, ChatGPT, and Claude.
Price Action: In after-hours trading, Alphabet Inc.’s Class A shares slipped 0.16% to $161.70, while Class C shares dipped 0.1% to $163.68, according to Benzinga Pro data.
Alphabet holds a growth score of 64.44%, based on Benzinga Edge Stock Rankings. Click here to see how it compares to other companies in the sector.
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