**Recent data highlights an emerging trend** that could reshape the digital landscape: OpenAI’s ChatGPT is slowly drawing users away from Google’s search engine. At the recent East Meets West conference hosted by Coatue Management, statistics from SimilarWeb revealed a striking pattern: individuals who adopted ChatGPT tend to perform about **8% fewer Google searches each month** two years after integration into their routines. This shift poses a significant challenge for Alphabet Inc. (GOOGL), the parent organization of Google, which has acknowledged the palpable threat posed by the AI tool.
The AI Disruption Begins
In a compelling antitrust hearing earlier this year, Sissie Hsiao, the former head of Google’s Gemini chatbot, candidly stated that **ChatGPT is already replacing certain search queries**, particularly those related to homework and mathematics assistance. While these specific searches may generate modest advertising revenue, Hsiao’s insights suggest that the rising popularity of **AI tools** poses a more profound and long-term risk to Google’s revenue streams.
Google’s advertising chief, Vidhya Srinivasan, addressed these concerns, indicating that the loss of **commercial searches**—those linked to shopping and advertising—is not just a potential risk but an **inevitable reality**. The latest data corroborates this assertion, hinting that this transition is already underway. Alarmingly, this shift is crucial because a large portion of Google’s revenue is derived from ads on its search platform. Meanwhile, OpenAI, bolstered by Microsoft (MSFT), continues to enhance ChatGPT, making it increasingly user-friendly and likely to attract even more users away from Google.
Assessing Google Stock: Is It a Good Buy?
On Wall Street, analysts maintain a **Strong Buy** consensus on GOOGL stock, with 29 “Buy” ratings and nine “Hold” recommendations issued in the past three months. Additionally, the average price target for GOOGL stands at **$199.11 per share**, indicating an impressive **14.88% upside potential** from current trading levels.
Discover more GOOGL analyst ratings
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As ChatGPT continues to evolve, the implications for Google and its advertising model are profound. **Will Google adapt to this new challenge** and retain its search supremacy? Only time will tell, but the data suggests a significant shift in user behavior that warrants close attention.
