Google is in trouble, deep
· computerworld.com · popularity 19/100 · 0 similar stories today · Entrepreneurship & Startups (Business & Finance)
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Summary
Remember when Google’s motto was “Don’t be evil”? Boy, wasn’t that a long time ago! It was more than ten years ago, and they replaced it in 2015 with “Do the right thing.” That hasn’t aged well either. Today, we’re seeing how Google’s losing-its-way is finally catching up with the onetime darling of the no-longer-quite-so-magnificent Magnificent Seven . There are many reasons why big tech players are floundering in shrinking valuations AI infrastructure overspending and the political backlash against AI data centers . But Google, Google is special. For example, as any of you who rely on Google advertising to market your products and services — or media companies that rely on it for profit — have seen, Google’s AI Overviews and AI Mode are sinking customers’ ad revenue . For businesses that rely on Google organic search, things are much worse. Oh sure, Google Search Ecosystem general manager Mrinalini Loew claims , “AI Overviews and AI Mode are designed to help people find and visit great websites, and to help publishers and websites strengthen their audiences.” That’s not what the websites are seeing. In fact, they’re seeing the opposite. Search Engine Land reports that three in four sites’ home pages have seen their traffic shrink in the past year. In the meantime, Ahrefs found that the “presence of an AI Overview now correlates with a 58% lower average clickthrough rate for the top-ranking page.” More specifically, Reddit CEO Steve Huffman said in the company’s latest earnings call that Google search referrals declined “meaningfully” because searchers didn’t go any farther than AI Mode and AI Overviews, instead of clicking onto Reddit. Now, where does Google make its money? Why, that would be ad sales, wouldn’t it? So what happens when publishers and advertisers start seeing less and less return? They stop spending money on Google ads, don’t they? As Forrester analysts pointed out last week, “The company’s advertising revenue growth slowed to 12% , its slowest rate in five quarters.” You’d think Google would have seen this coming, wouldn’t you? But its executives, too, are blinded by AI madness. Now it’s starting to sink Google’s own ad business. Oh sure, for now, Google’s internet search ad revenue rose to $63.35 billion, up 12%, vs. estimates of $64.87 billion, or 14.8% growth. So what? Spoiler alert: People don’t buy Google for its revenue. No, Google is still judged by its growth, and Google is no longer growing. The result? You’re getting less value from Google ads, and Google’s stock price has declined. As of November 6th, Alphabet’s GOOGL shares have fallen about 18% over the past 30 days. That includes a single-day drop last week that wiped out $500 billion in market value. Betting on Google, both in the market and as the foundation for your ads, seems like less and less of a good bet. Worse, Google seems to want to throw away whatever goodwill it has left by shoving AI down the throats of school systems . Google now insists that schools must turn on its AI tools in its K-12 student software. Otherwise, they won’t be able to use Google Search. Sure, there are search alternatives. DuckDuckGo says people are already moving to its service because they’re sick of Google forcing AI slop on them. But Google dominates the educational market. According to About Chromebooks , Chromebooks now run 60.1% of the global K-12 device market in 2026 … and 93% of US school districts are buying more this year. Google’s AI diktat is going over like a lead balloon in schools. As Randi Weingarten, president of the American Federation of Teachers, told NBC News , “Instead of working with teachers and parents to uphold privacy and ensure their tools are safe and useful, it throws the baby out with the bathwater and bans access to the tools altogether.” Former FTC chair Lina Khan tweeted , “Google is using its search monopoly to coerce schools into adopting AI. This highlights the danger of allowing an unregulated monopolist to control an essential service.” Put it all together, and, as unthinkable as this would have been even months ago, it’s time to start looking for Google alternatives. What will that be? I don’t know yet. I don’t think anyone does. But my Google crystal ball is showing lots of cracks.
Found in: Computerworld. Rating basis: single outlet; outlet tier 2 (unlisted); 1 feeds; feed position 8.