17 publishers · first seen Thu, 29 Oct 2026 08:45 UTC · updated Sat, 31 Oct 2026 17:09 UTC
Google's latest earnings call revealed that its AI Mode, which provides AI summaries directly on the search page, is impacting its ad revenue. The company plans to address this by increasing the number of ads shown in AI Mode, including in international markets. Despite this, Google's revenue from AI Mode ads is currently lower than from traditional search ads. Alphabet's share price dropped significantly following the earnings call, with $500 billion wiped from its market value. The decline is attributed to Google's AI features potentially reducing Search revenue, despite a 12% year-over-year growth in Search queries.
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