OpenAI has revealed that the volume of queries currently conducted through ChatGPT accounts for approximately 20% of the total online searches dominated by Google Search. This assertion not only indicates a shift in user habits but also suggests a potential large-scale transformation of a cornerstone of the digital industry’s business model.
This noteworthy statistic was shared by Adam Fry, the Consumer Product Lead for ChatGPT, during a recent interview. Fry highlighted the surprising nature of this figure, especially considering that the platform was launched just a year and a half ago. He elaborated that the diverse range of applications for the popular chatbot has contributed significantly to this trend.
Fry recalled that merely two years prior, users primarily turned to ChatGPT for assistance with writing and programming queries. However, he pointed out that in the last twelve months, users have sought information on a broad spectrum of topics, including current events, historical references, and data related to various subjects such as finance and health.
Redefining Search Queries
In this context, Fry clarified that the company regards as a search “anything that a user would traditionally have approached a conventional search engine for, but now opts to inquire about through ChatGPT.” While he did not disclose the source or methodology behind the calculations regarding Google’s search volume, his comments reignite speculation about how artificial intelligence is reshaping the landscape of search and online advertising.
ChatGPT emerged as a direct competitor to Google by late 2024, following the integration of SearchGPT, a feature that enabled the chatbot to provide real-time information and reference links to consulted sources. Since this development, statistics have indicated that the AI assistant could potentially rival Google Search, particularly as these tools increasingly contribute to web traffic. Data from StatCounter shows that by the end of 2023, Google Search traffic had decreased by 0.4% compared to 2022, while Bing (now Microsoft’s Copilot) and ChatGPT saw increases of 8% and 4%, respectively.
This trend has been corroborated by various studies indicating a decline in the quality of search results from Google. Analyses suggest that the company has been prioritising short-term advertising profits over user experience.
The Rise of AI Chatbots
In this evolving landscape, chatbots have emerged as new competitors not only in the online search sector but also in digital advertising. Their offerings provide advertisers with enhanced targeting capabilities while delivering a conversational interaction for users, at least initially, without the distraction of advertisements.
Google’s response to this challenge was the introduction of AI Overviews, a contentious feature within its search engine that addresses queries with AI-generated summaries. These summaries are designed to distil information from multiple sources and include links to referenced sites. When this tool launched in 2024, the company claimed it would help users “find information quickly and discover everything the web has to offer” while providing new opportunities for publishers, media companies, and content creators to broaden their reach.
However, these promises have largely gone unfulfilled. Shortly after its implementation, reports surfaced indicating that the summaries often contained inaccuracies, biased or erroneous data, and outdated information. Consequently, numerous media outlets and content creators expressed concerns that the feature diminished their ability to attract visitors, directly impacting their revenue. This sentiment was echoed in research from the Pew Research Center, which found that only 1% of users clicked on links found in AI-generated summaries displayed in the search engine.
OpenAI’s Strategic Shift in Online Advertising
Against this backdrop, Fry’s comments gain significance not only due to the growth of ChatGPT’s user base in recent years but also because of the changes in OpenAI’s business model. The company claims that the chatbot boasts approximately 1.2 billion active users each week. Key updates include advanced programming features, image generation capabilities, a new interface showcasing search results with interactive visual elements, and specialised versions tailored for sectors such as healthcare, education, and finance.
The evolution and increasing adoption of this tool have enabled OpenAI to explore new revenue-generating avenues beyond its various subscription plans. This year, the company introduced advertising within both the free and Pro versions of ChatGPT. Currently, these ads feature the advertiser’s name, logo, a brief description, and a link to their product.
Moreover, the company has announced plans to test a new format involving sponsored services and products, a move that could expand the reach of Instant Checkout, a feature allowing users to purchase items from various online stores directly through a conversation with the chatbot.
As OpenAI prepares for its anticipated public offering next year, it is positioning itself to capitalise on its growing market share in online searches. This shift may compel Google to redefine its strategy in light of the emergence of a formidable new competitor and could instigate a profound transformation of the established norms governing digital advertising and search business.