Apple is reportedly exploring AI-powered search engines for its Safari web browser, according to Eddy Cue, Apple’s senior vice president of services.

This information came during the US Justice Department’s lawsuit against Alphabet.

Cue highlighted a decline in searches on Safari, attributing it to the rise of AI-based search alternatives.

Cue mentioned that AI search providers, such as OpenAI, Perplexity AI, and Anthropic, could replace traditional search engines like Google.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Apple’s pivot threatens a $20 billion revenue stream

Apple’s potential move toward AI search engines represents a substantial financial decision that could disrupt one of tech’s most lucrative partnerships.

Google currently pays Apple approximately $20 billion annually to maintain its position as Safari’s default search engine, a figure that has grown significantly over time 1.

This arrangement has been so financially important that it reportedly constitutes a substantial portion of Apple’s operating income, explaining why the company has been reluctant to develop its own search engine despite having the technical capability 2.

The Justice Department’s antitrust lawsuit against Google has put this arrangement under scrutiny, potentially accelerating Apple’s need to diversify its search partnerships beyond Google 1.

Eddy Cue’s testimony about adding AI search providers like OpenAI, Perplexity AI, and Anthropic signals a strategic shift that could alter the competitive dynamics of the search market.

2️⃣ AI search engines show measurable advantages for complex queries

Experimental data suggests that AI-powered search solutions deliver better experiences for certain types of user queries, explaining Apple’s interest in this technology.

Research from Carnegie Mellon University found that users of generative AI platforms reported 17% higher satisfaction rates and achieved their goals faster than those using Google Search 3.

These AI platforms demonstrated an advantage in first-attempt success rates, with 88% of users finding what they needed on their first try compared to 79% for Google users 3.