"Is This the End of Searching? Shifting from 'Search' to 'Ask' in AI-Driven Market [Part 1]"

# AI-Powered Search Services Challenge Traditional Search Engines' Dominance SEOUL—Marketer Kim (31) previously relied on Google and Naver to create marketing reports. However, since subscribing to ChatGPT's premium membership last October, Kim has transitioned to using AI-driven search services like ChatGPT and Perplexity for work-related queries. Whether analyzing consumer responses to specific products or examining competitors' marketing strategies, AI platforms are now indispensable. These tools’ ability to convert information into PDF documents has notably reduced report preparation time. "Instead of scouring websites manually via search portals, AI-generated results are sufficient now," Kim said. The revolutionary World Wide Web (WWW) transformed search engines into the de facto "online gateway" since the late 1990s. However, the rapid rise of generative AI is challenging their decades-long dominance. Google and Naver have been the primary internet entry points, influencing not only users but also online businesses, including e-commerce platforms. For over 25 years, they have maintained a monopolistic grip as "emperor platforms." However, the emergence of AI-powered platforms may soon redefine the digital gateway. # Could Google's Dominance Be Waning as Apple Eyes ChatGPT and Perplexity? “Last month marked the first time Safari [Apple's web browser] saw a decline in search volume. AI is poised to replace Google’s search dominance,” remarked Eddy Cue, Apple’s senior vice president of Services, during an October 7 federal antitrust trial in Washington D.C. about Google’s search monopoly. Cue’s statement caused significant ripples on Wall Street, with Alphabet, Google's parent company, seeing its shares plummet by over 7%. Investors fear that firms like OpenAI could undermine Google’s lucrative advertising revenue streams. Cue highlighted declining search volumes from Apple devices—iPhones, iPads, and Macs—where Safari users are currently directed by default to Google search. Google has historically paid Apple handsomely for this privilege, reportedly sharing $20 billion in revenue with Apple in 2022 alone. The executive noted that "as people increasingly turn to AI platforms such as OpenAI's ChatGPT, Perplexity, and Anthropic, traditional search engines like Google could gradually become obsolete." While Apple plans to integrate these AI tools as search options within Safari, Cue clarified they won’t replace Google as the default yet. However, he foresees that advances in large language models (LLMs) will encourage more users to adopt AI-based search solutions. # ChatGPT Gains Traction in Korea: The Era of Search by Question, Not Keywords Cue's observations align with the rising use of AI-based search tools. A report from OpenAI's Ireland division last month indicated that ChatGPT’s search functionality in Europe reached 41.3 million monthly active users (MAUs) in the six months ending in Q4 last year—an increase of 3.7 times compared to the prior two quarters. Additionally, a survey last September by Evercore revealed that 8% of respondents preferred ChatGPT over Google as their search engine. South Korea is also seeing a surge in generative AI services adoption. Data from Mobile Index shows ChatGPT’s app achieved over 10.72 million MAUs in Korea last month, a 2.1-fold increase from the previous month, marking a significant milestone locally. Following the “Ghibli Meme” trend, AI services have become mainstream, cutting across age groups. Students lead this shift. A February survey by Everytime, a campus life platform by Binoulabs, revealed that 70% of Korean undergraduates use AI services for tasks like information retrieval and report writing. Among various use cases, "information search" was most popular (66.7%), followed by "report creation" at 59%. Binoulabs noted that the trend signifies students are shifting from search portals to YouTube and now to generative AI. # Why Traditional Search Engines Are Losing Ground The shift stems from text-based search engines' inherent limitations. Platforms like Google and Naver primarily list web pages matching user-entered keywords. In contrast, AI platforms like ChatGPT and Perplexity reformat information to meet user needs. For example, students can ask ChatGPT to create ready-to-use draft papers instead of manually compiling data for a thesis. When summarizing a research topic, AI tools can synthesize journal articles, statistical data, and relevant news into a comprehensive report. Unlike traditional search engines, these platforms offer customization and utility that have made them essential. Even before AI's rise, text-based search engines had limitations. In the late 2010s, as YouTube's popularity grew, users began favoring videos for more intuitive information. Generative AI advances this by presenting data in requested formats (like PowerPoints or reports) and accurately interpreting user intentions for customized results. Industry observers believe AI tools could become the next "gateway of information retrieval." While AI search's current impact is still emerging, its potential could disrupt Google’s advertising-driven business model. Notably, 56.2% of Alphabet's Q1 revenue—$50.7 billion out of $90.2 billion—comes from advertising linked to Google’s search engine. The market realignment prospects also affected Naver, Korea's leading search portal, whose shares dropped by over 5%. However, Naver stated it hasn't noticed significant traffic impacts from generative AI. During the company’s Q1 2023 earnings call on October 9, CEO Choi Soo-yeon remarked, “So far, our internal data shows no adverse effects on search query trends from generative AI services.” Choi added, “Unlike Google, Naver focuses less on offering answer-based searches and more on ensuring user satisfaction with exploratory content, like personalized restaurant recommendations or e-commerce options, using user-generated content (UGC). This strategic focus mitigates potential disruptions from AI innovations.”