Google AI Overviews and Its Business Impact in the Tech Industry

Google Overviews is a feature on Google Search that is designed to provide users with concise and comprehensive summaries of search results. The search giant reports that “people have already used AI Overviews billions of times through our experiment in Search Labs.” While search engine users may find Google AI overviews to be helpful, or at least a time saver, only the question of whether the feature helps or harms the tech industry is examined here. 

It’s not an inconsequential question given that the tech industry, like many other industries, relies heavily on search engines for website traffic. Particularly Google which according to a Semrush report “accounts for 91.54% of the global search engine market” and “66% of web traffic referrals come from Google.” 

Google Search is so strong that even Google relies on Google to drive large audiences to their products, services, and web content. Recent SparkToro analysis finds that the results in “Google’s monopoly power to self-preference their own properties is that almost 30% of all clicks go to platforms Google owns. YouTube, Google Images, Google Maps, Google Flights, Google Hotels, the Google App Store, and dozens more means that Google gets even more monetization and sector-dominating power from their search engine.” 

Related:Navigating Google’s AI Changes to Search: Is SEO Dead?

Putting this in light of another perspective, SparkToro also reports that “for every 1,000 searches on Google in the United States, 360 clicks make it to a non-Google-owned, non-Google-ad-paying property. Nearly two-thirds of all searches stay inside the Google ecosystem after making a query.” 

That same SparkToro report says that “despite a bump in clickthroughs to the open web in summer 2023, the overall trend is negative … Google continues to send less and less of its ever-growing search pie to the open web” but “because that pie is growing, the overall amount of traffic Google refers to the open web remains relatively stable.” 

Now that Google is adding an AI produced overview to the top of search results, how far do searchers have to go to escape Google turf, enter the open web, and find any given properly-SEO -endowed tech company website? 

A recent study by Authoritas found that “Google pushes the top-ranked search result down the page by an average of 1,255 pixels.” Zapier explains that finding in more relatable terms: “For context, 1,255 pixels can be several scrolls down, especially on mobile devices, making it less likely that users will click on (or even see) high-ranking results. With AI Overviews now in position 0 (like Google’s featured snippets), the coveted No. 1 spot on Google’s search results page may no longer be as meaningful as it used to be.” 

Related:OpenAI’s SearchGPT Takes Aim at Google’s Search Engine Dominance

The question is, does a downwards pixel push on a search results page matter or is it simply a change in the way search is done post-GenAI? After all, one could easily make the same argument about the new search engine Perplexity which is currently rising in popularity and serves up both a summary and links to its sources. 

It’s interesting to note that Google’s US rollout of AI Overviews on May 14 was followed by a quiet rollback on May 30, which is a remarkably short window that further clouds the question of who benefits -- and who does not -- from this feature. Google, by the way, declined to comment for this article but a PR representative did point to Google’s web content as background information.   

So, the question remains: Do Google AI Overviews help or harm the tech industry? A report by SE Ranking finds that “84.72% of AIOs [short for AI Overviews] link to at least one domain from the top 10 organic search results” which Vince Nero, director of Content Marketing at BuzzStream thinks “shows that Google does at least consider some of the same trust signals that are required to rank.” 

Related:Could Google Lose ‘Verb’ Status After Antitrust Ruling?

SEO specialists and researchers tend to agree.  

“My personal takeaway? Both the fear of AI Overviews and the “death of Google search quality” are all sound and fury, signifying nothing. Or, at least, not very much,” says Rand Fishkin, who wrote the SparkToro report. 

Still others say hold up a second: help or harm is a relative measure. 

“Google Overviews have undeniably transformed the way users interact with search results, and their impact on the tech industry is complex. Whether their overall effect is positive, negative, or neutral depends largely on your perspective and where you fit within the larger tech ecosystem,” says Joe Collins, director of client strategy at CadenceSEO. 

Introduction to Google AI & AI Overviews

The AI that powers Google AI Overviews is a Gemini model that has been customized for Google Search. Specifically, it is a generative AI model in Google’s Gemini family of large language models (LLMs). Tasks it performs for AI Overviews include scraping data from various web pages which it then uses to produce brief overviews in answer to a user’s query. Gemini has been integrated with Google’s core web ranking systems and is designed to pull out relevant results from its index of websites. The result is the summaries that Google AI Overviews places at the top of search results pages. 

Google says in a blog post that “with AI Overviews, we’re seeing that people have been visiting a greater diversity of websites for help with more complex questions.” It goes on to say “we see that the links included in AI Overviews get more clicks than if the page had appeared as a traditional web listing for that query.” 

However, not everyone agrees with that assessment. 

“Although Google has pulled back on the proportion of overviews in the SERP [search engine results page] to address the quality issues that plagued the feature’s release, we’re seeing ripple effects,” says Adam Tanguay, head of SEO and content at Jordan Digital Marketing. 

“Google intends for the users to stay on the SERP, not click through to the sources cited in the Overviews, and that’s generally what’s happening, which is suppressing traffic to tech companies’ sites. It’s too early to say what the effects will be from a revenue standpoint, but in a world where first-party data is getting more valuable by the day, losing any site traffic and potential for leads will have adverse effects on tech companies looking to acquire new customers," Tanguay adds. 

AI use in search engines to summarize search results is a new development. A comparative effort for Google AI Overviews is Perplexity, a startup search engine built from the ground up on AI by founders who once hailed from OpenAI and Meta. Perplexity is growing in popularity and widely praised for citing and linking its sources at the top of its search summaries. Other search engines are following suit as the field continues to seek ways to provide more value for users and harvest the resulting monetary rewards. 

What Is Google AI?  

Google AI is Google’s artificial intelligence research and development division. The division partners with industry AI leaders and academic institutions to advance AI research, and also shares some of its research and AI tools through open-source initiatives. 

Many Google products and services use Google AI technologies, such as Google Search, Gmail, Google Cloud, Google Translate, Google Assistant, Google Docs, Google Sheets, and Google Photos. 

Key Technologies in Google AI  

Google AI works on various AI fields, including machine learning, deep learning, neural networks, robotics, computer vision, and natural language processing. 

Machine Learning  

Google AI heavily uses machine learning techniques across various applications and products. For example, Google uses neural networks and deep learning for advanced AI capabilities, as seen in projects like TensorFlow 

Natural Language Processing  

Natural language processing (NLP) is evident in products like Google Translate and language models like LaMDA 

Generative AI (GenAI) 

GenAI is a major focus area for Google. For example, a customized model from its Gemini family powers features like AI Overviews in search results and creative applications. While Gemini is Google’s latest and most advanced AI model family, the company continues to develop other models like LaMDA (Language Model for Dialogue Applications) for conversational AI applications like Google Assistant, Chatbots and virtual agents, and smart replies in messaging apps. 

Computer Vision  

Google uses computer vision in applications like Google Photos and Google Lens for image recognition and processing. 

AI Cloud Services  

Cloud TPUs (Tensor Processing Units) are specialized AI processors for machine learning applications. Cloud TPUs are a significant advancement in AI hardware, offering specialized processing power to markedly accelerate machine learning tasks, from training large models to running inference at scale. TPUs are integrated with Google Cloud services as powerful tools for pushing the boundaries of AI and machine learning applications. 

The Business Impact of Google AI Overviews

An Improved Customer Experience?

Google AI Overviews have the potential to produce positive impacts on the tech industry. Enhancing user experience by providing quick, comprehensive summaries, making information more accessible, and reducing the time spent on research can drive higher engagement and satisfaction among users. Additionally, it can increase traffic to high-quality content sources by prominently featuring them in summaries, potentially boosting ad revenue and visibility for these sites. 

“Traffic to content will likely decrease as AI Overviews replace responses to common queries. However, niche, high-quality content will become increasingly important. Product-based content, such as reviews and product pages, will likely see increased traffic instead of a reduction,” predicts Yaniv Makover, CEO at Anyword, an AI writing platform for enterprise marketing teams. 

However, some question that prediction based on their observations in the here and now.  

“The downside is evident in the drop in direct website traffic. When Google Overviews provide comprehensive answers, users often skip visiting the original source. Our detailed AI research articles saw a 20% reduction in click-through rates once key points were displayed in the Overview. This directly affects ad revenues and potential leads making monetization a major challenge,” says Michael Hess, founder at Code Signing Store. 

While this sounds like a punishing blow, it may not be. 

“The concern is that AIO [short for AI Overviews] will take away clicks to websites. But most likely, it will only take away top funnel questions and terms from sites. So, instead of learning something like “what is content marketing” from a website, users will get the answer from AIO instead of going to the site. This type of traffic isn’t super valuable for most websites anyway,” says Vince Nero, director of content marketing at BuzzStream.  

Smaller Sites Face Uphill Battle

Yet that’s not the only downside that potentially exists. For example, smaller or less prominent websites may struggle and fail at gaining visibility if the system heavily favors larger sources in the summaries.  

“Imagine trying to explain quantum computing in a tweet. That’s what Google Overviews often feel like. Moreover, the stranglehold of Big Tech -- already a contentious issue -- is only tightened by these summaries. Smaller companies and independent publishers find it increasingly difficult to compete for visibility and clicks, their lifeblood in a fiercely competitive digital landscape,” says Lars Nyman, CMO of CUDO Compute, a platform that powers many AI projects, and an ex-Googler. 

This can result in concentrated traffic and revenue shared among a few dominant players, potentially stifling diversity and innovation and possibly driving lesser-known companies like SMBs and startups out of business. Further, the reliance on algorithms for content curation raises concerns about bias and accuracy, as well as the potential for misinformation if the summarization process falters or hallucinates. 

“Google Overviews are like the gatekeepers of information, deciding what gets through and what doesn’t. It’s a power dynamic that’s as concerning as it is convenient,” says Nyman. 

Google AI Overviews: Here to Stay

AI summaries in search engine results, including Google’s, are likely here to stay. At least for the foreseeable future. This is quickly becoming an impetus to adapt to profound change. 

“SEO strategies have to be adapted to this “new normal,” because ranking for content by the virtue of that content’s quality alone isn’t enough anymore. Now, content needs to be optimized for presence in overviews,” says Collins. 

“Arguably, the most important thing to consider is how this could permanently change user behavior. The long-standing process of “search, click, and read” will no longer be the norm when quick-hit, simplified answers to questions via content scraping are ubiquitous,” Collins adds. 

Challenges and Considerations

Some see Google AI Overviews as both inevitable and an advantage in product and brand differentiation over traditional SEO results. Others are not so sure this is a good development and are recommending taking proactive measures. 

Web Traffic Implications

“While it’s possible to drive more click traffic, it’s also true that giving what’s valuable on a site upfront could reduce clicks. Because really, what’s the incentive to click after a user gets their answer? That’s not to mention that summaries are just snippets, and those can be too brief to fully explain a company’s position on a complex topic. Essentially, whatever is delivered to a user is taken out of context, so site content needs to be clear and concise or risk misinterpretation,” says Collins. 

Replacing vague wording and marketing buzz words with more exact language on tech websites may actually be a public service. Ultimately it will likely add to a positive customer experience. Even so, AI built summaries may not add to a user’s edification or a tech company’s bottom line.  

“When users get information directly from Google AI Overviews, they often bypass visiting our website entirely. This can reduce direct engagement, affect our site’s traffic metrics, and limit opportunities for deeper user interaction and lead generation. For a company like Huntress, where detailed content about our services for SMBs is key to setting us apart from the competition, this can be a significant drawback,” says Seth Geftic, VP of product marketing at Huntress, a managed cybersecurity platform. 

Ethical and Privacy Concerns

There are risks for Google, OpenAI, and other AI model builders and trainers too. 

“Google AI Overviews has been built on the work of uncompensated creators. The current approach to Google’s AI tools equates to stealing traffic from original creators. This raises ethical concerns about fair compensation for artists and copyright holders,” says TJ Leonard, CEO and co-founder of Storyblocks, a stock media platform supporting creators and brands. 

Legislators are currently grappling with this issue. Meanwhile, the Center for Internet and Society at Stanford Law School reports that “the US Copyright office will refuse to register a claim if it determines that a human being did not create the work.” The same is true of the EU Patent Office. It is difficult to foresee what regulations lie ahead, what impact they will have on search engines, and therefore how they may impact SEO tactics for tech companies in the future. 

Final Thoughts on Google AI and Business Transformation

“Here’s the takeaway: Companies that publish news articles, guides, and other easily summarized content may be more affected than those offering in-depth analysis or unique products. Companies that rely heavily on ad revenue from site traffic could be looking at a threat to their core business models. But companies that can adapt their content strategies to align with Google’s algorithms may be less affected, or even benefit from increased visibility. In the end, it’s a double-edged sword for the tech industry -- but one we should probably accept as reality,” says Collins. 

Tech companies will need to keep a close eye on evolving developments in Google AI Overviews and competitive search engine AI summaries. 

“Google continues to test layouts and how much exposure they give to AI Overviews, so there’s never going to be a definitive answer, or at least not for a long while,” says Nero.  

At the very least, tech companies will need to take a hard look at their SEO strategies and regularly measure how often and how well their companies, brands, and products and services are mentioned or linked to in Google AI overviews, Perplexity summaries, and in other search engine SERPs as well.  

But that will likely be an ongoing trial-and-error exercise as the search engine industry is in flux at the moment. Google AI Overviews has pulled back “the number of AIOs in SERPs from 64% before (AIO answer or Generate button) to 8.71% (only AIO answers),” according to a SE Ranking report. Bing is presenting a mix of AI summary and traditional search results similar to what Google AI SERPs show now. Meanwhile, Perplexity is plowing full steam ahead at 100% AI summaries with links to sources (websites) used to generate the summary, and no search result list. 

Given Google is king of the search hill and there appear to be no signs that it is losing ground, Google AI Overviews will continue to receive the most scrutiny. However, the writing is on the wall. AI excels at synthesizing information and that’s a natural fit with the mission of any search engine. It’s now up to tech companies to figure out how to capitalize on this latest development.