Replacing Google with AI: Apple's AI-Driven Search Strategy on iPhone
- Written by Malte Mansholt-esque
- Approx. reading time: 3 Min
Apple Intends to Swap Google Applications on Your iPhone with Artificial Intelligence Solutions - Apple seeks to displace Google on iPhones with AI integration
In an unprecedented move, Apple's veil of secrecy is lifted regarding their dealings with Google and the future of AI on Apple devices, particularly the iPhone. The revelation goes beyond a lawsuit against Google; it's about the evolving role of AI and the impending demise of the Google search engine giant.
The catalyst is a lawsuit in which Apple serves as a witness. The U.S. authorities accuse Google of abusing a dominant position. Apple and Google have a deal: to keep Google as the default search engine in Safari on iPhone, iPad, and Mac, Google reportedly pays Apple around $20 billion yearly. However, this arrangement could be on the brink of change. Apple, on the other hand, sees a different threat to Google.
Opening the Curtains
Apple’s senior vice president of Online Services, Eddy Cue, opened up in a trial in Washington D.C. on Tuesday. For the first time in 22 years, the number of search queries via Safari had decreased in April, he revealed. He attributes this to people relying more on intelligent AI-based tools like ChatGPT to answer their questions instead of conventional internet searches.
Apple, too, wants to capitalize on this trend by integrating more AI-powered tools. Cue mentioned AI platforms like Perplexity, ChatGPT, and Claude, hinting at their potential to replace traditional search engines like Google. However, they're not quite there, according to him. "We will certainly add them to the list of search engines in Safari," Cue explained, "But they won't be the default." Apple already provides a range of search engines for users to choose from, with Google being the default in most countries.
Google: Still the Way to Go
And that's the way it should stay, Cue argues. "We really don't have a choice," he stated when asked about alternative options. The quality of Google, he highlights, is unmatched. Even without the $20 billion annual revenue from Google, they'd probably still depend on Google, he suggests. If the court forces Apple to terminate Google's payment, it wouldn't make a difference – except for Google saving some money and Apple losing a multi-billion-dollar deal, in Cue's opinion.
Judge Amit Mehta's observation that Apple has no incentive to develop its own search engine due to the deal is something that Cue can't dispute. "I can't say I see it differently," he admits. However, he leaves open whether Apple wants to, though. "We can't do everything," Cue believes. Speculations about Apple working on its own search engine have been doing the rounds for years but never materialized.
With the advent of AI, the market could shift rapidly, Cue foresees. "So far, none of them are good enough" to truly challenge Google, he insists with confidence. However, that could change soon. "Before AI, it always felt like there was no really good alternative. Today, the potential is much greater because the newcomers are approaching the problem with completely different approaches," he concluded.
The Future Beyond the iPhone
Intriguingly, Cue also admitted during his testimony that Apple's most iconic product – the iPhone – could become obsolete under the dramatic change brought about by AI. "We're not an oil company, we don't make toothpaste," he explains. "Those things will always be needed. But that doesn't mean you'll still need an iPhone in ten years."
This statement may come as a shock given that the iPhone still accounts for nearly half of Apple's revenue. But for Cue, it signifies that companies must keep evolving. He compares it to the time when Apple decided to discontinue the iPod. "Why would anyone kill the goose that lays the golden eggs?" people said about the company's most valuable product at the time. But Apple had made its decision – and redirected all its energy into the iPhone. In Cue's eyes, it was the wisest decision the company ever made. He didn't reveal which Apple product could replace the iPhone, though.
Sources: Bloomberg, The Verge
- iPhone
- Apple
- Eddy Cue
- Search Engine
- Smartphone
- ChatGPT
- iPad
- Mac
- Enrichment Data:
- Apple is actively discussing partnerships with companies like OpenAI and Perplexity to integrate AI search capabilities into Safari [1][4].
- The goal is to improve search relevance and personalization, enhancing the overall browsing experience with AI-driven recommendations [3].
- Apple views AI as a significant technological shift, potentially disrupting Google's current dominance in the search market [1].
The following are the types of data: queries, technology, and apple. The types of AI platforms that Apple might integrate into Safari are Perplexity, ChatGPT, and Claude. The Apple executive, Eddy Cue, stated that none of the AI platforms are currently good enough to challenge Google's dominance in the search market. The iPhone's future might be obsolete with the advent of AI, according to Eddy Cue.
