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Google Search is entering a new era with a sweeping AI-powered transformation, unveiled just as Apple warns that artificial intelligence is already cutting into the traditional search engine’s dominance.

The latest update, announced at Google’s annual I/O developer conference, introduces a more conversational interface and an AI assistant.

This marks a major strategic shift as Google tries to stay ahead of rising competitors like OpenAI and Anthropic.

Apple Says AI Is Disrupting Search

In testimony during the Department of Justice’s ongoing antitrust trial against Google’s parent company, Alphabet, Apple executive Eddy Cue revealed a stunning admission: “Searches on Apple’s Safari browser shrank for the first time ever in April.” He attributed this drop to users turning to AI tools instead of Google Search.

Cue’s statement underscores what’s at stake in the federal case, which has spotlighted Google’s massive $20 billion-a-year deal with Apple to remain the default search engine on iPhones and other Apple devices.

•  Read more about Apple’s testimony on AI disrupting Google’s market share

AI Mode: The Future of Google Search

In response to growing pressure, Google Search is rolling out AI Mode, a new feature designed to make interactions smarter and more human-like. Opening in a separate tab, AI Mode allows users to ask layered or follow-up questions, making searches feel more like a conversation than a static query.

“This is a glimpse of what’s to come in Search overall,” said Liz Reid, Google’s head of Search.

AI Overviews — a tool that summarizes information instead of listing links — has already been in limited use. But Tuesday’s announcement shows a more aggressive integration of generative AI into Google’s core product.

•  Read more about Google’s latest AI updates at I/O

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Google Launches Flow: AI Movie Tool Raises Eyebrows in Hollywood

The updates didn’t stop at Search. Google also introduced Flow, an AI-powered film-making tool that could revolutionize the entertainment industry.

According to Google, Flow is meant to assist studios with content creation, not replace them. It’s hard to ignore the disruptive potential.

“Studios spend millions on high-end productions. What happens when AI can do the same job faster and cheaper?” asked Business Insider’s Alistair Barr in his coverage of Google’s new tool.

As Google positions itself both as a partner and a disruptor to legacy industries, the balance of power between AI tools and traditional services continues to evolve.