In recent years, the tech sector has embraced artificial intelligence, leading to rapid changes and predictions about future transformations. AI is now integrated into many products, sometimes causing consumer complaints about unnecessary features. Despite this, companies continue to invest heavily in AI development. For instance, Microsoft and OpenAI plan to build a $100 billion supercomputer for AI models, while Apple intends to spend $500 billion in the U.S. over the next four years, with significant investment in AI.
Apple’s senior vice president of services, Eddy Cue, testified in a federal court case against Alphabet regarding its dominance in search markets. Cue suggested that AI search engines could eventually replace traditional ones like Google. He also mentioned plans to incorporate AI services into Safari, sourced from OpenAI, Perplexity, and Anthropic. April saw an 11% drop in Safari searches, attributed to increased AI usage.
If Cue’s prediction materializes, it could drastically impact both companies. Google pays Apple billions annually to be the default search engine on iPhones—$20 billion in 2022. Cue expressed concern about the potential end of this deal.
Google responded to Cue’s comments, stating continued growth in search queries, including from Apple devices. They emphasized ongoing innovation in enhancing Google Search with new features. Research indicates that AI is not yet pervasive, with 44% of people believing they do not regularly interact with it. The primary use of AI in 2025 is predicted to be therapy and professional support.
While Cue envisions a future where AI replaces traditional search, this reality is not yet here. The concept of asking AI instead of “Googling” remains speculative, given AI’s current limitations.
— new from TheStreet