Google Introduces AI Mode to Combat Competition from OpenAI

Google is rolling out its AI Mode feature across the US market in an effort to maintain search dominance amidst growing competition from startups like OpenAI. The new update aims to provide users with more personalized and proactive search experiences, enabled by advanced artificial intelligence capabilities.

CEO Sundar Pichai announced that Google’s search market share may drop below 50% in five years due to the rise of generative AI-powered chatbots. However, he emphasized that the company will continue to deliver high-quality models at competitive prices, citing its ability to stay ahead in the tech industry.

Google has introduced an “AI Ultra Plan” for $249.99 per month, which includes higher limits on AI capabilities and early access to experimental tools like Project Mariner and DeepMind’s Veo 3 model. This plan aims to cater to users who want more advanced search experiences and is part of Google’s broader efforts to invest heavily in artificial intelligence.

The company has also announced new partnerships with glasses designers Warby Parker and Gentle Monster to develop Android XR-enabled headsets. Additionally, a new smartphone camera capability using AI was demonstrated, which can point a camera at an invitation and add the event to a user’s calendar.

As Google continues to innovate and adapt to changing technology trends, its strategy will focus on enabling users to interact with their devices in more intuitive ways while maintaining the company’s dominant position in the search market.

Source: https://www.reuters.com/business/google-unveil-ai-upgrades-io-conference-amid-search-challenges-2025-05-20