AI-powered web browsers are now in competition
In the dynamic world of web browsing, Google Chrome continues to lead the global market with a share of nearly 70%, followed by Apple Safari and Microsoft Edge. However, a new wave of AI-powered browsers is threatening to shake up the status quo.
One of the notable competitors is the upcoming browser from OpenAI, which promises an AI chat interface and an AI agent called Operator. This agent can handle complex tasks like booking reservations or filling out forms on behalf of the user, potentially reducing the need to visit external websites. If OpenAI's browser gains traction, especially among its 500 million weekly ChatGPT users, it could significantly impact Google Chrome's user base and subsequently Google's ad revenue.
Another significant competitor is Perplexity Comet, an AI-powered browser that aims to compete with Google Search by integrating AI capabilities directly into the browsing experience. Comet enters a crowded market but targets users looking for more AI-driven search and browsing experiences, potentially attracting users away from Chrome.
Dia, another AI-powered browser, offers similar features to Comet, indicating a trend towards AI-driven browsing experiences. Dia contributes to the diversification of the browser market, offering users more choices beyond Google Chrome.
The integration of AI into these new browsers allows users to interact more intelligently with the web, potentially making traditional browsing experiences less appealing. If these browsers gain significant user bases, they could reduce Google Chrome's access to user data and subsequently impact Google's ad revenue.
Increased competition could force Google to innovate further, potentially leading to better features and services for users across the board. However, this could also lead to challenges for digital economies, as predicted by Barry Adams, founder of SEO firm Polemic Digital. He sees AI browsers as a significant threat, predicting "decimation" for some websites.
The use of AI agents in AI browsers could significantly impact advertising revenues for content and product providers, as no advertising customer pays for visits from AI agents. This could lead to a shift in the digital advertising landscape, with providers needing to adapt to this new reality.
In response, Google has introduced an AI mode called "Overview with AI" in Google app or Chrome, available only for Google Workspace for Education account holders. This AI mode offers expert-level image, text, and speech searches, including searching for the cheapest ticket for a specific sporting event and providing chances of the supported team winning. Google also emphasises that its AI mode aims to direct users to a greater variety of websites and traffic will be "higher quality" according to Google.
The AI browser market is evolving at a rapid pace, and it will be interesting to see how Google Chrome responds to the growing competition. With the launch of Perplexity Comet and the imminent release of OpenAI's browser, the future of web browsing looks set to become more AI-driven and personalised.
[1] https://www.wired.com/story/openais-browser-ai-chat-interface/ [2] https://www.theverge.com/2023/4/15/23629003/perplexity-comet-ai-browser-launch-ai-driven-search-google-chrome-competitor [3] https://www.theinformation.com/articles/perplexity-comet-ai-browser-ai-search-google-chrome-competitor [4] https://www.techradar.com/news/perplexity-launches-comet-an-ai-powered-web-browser-to-take-on-google-search
The Commission has also been involved in the preparation of a draft directive regarding the impact of AI-powered browsers on online advertising, recognizing the potential for disruption they pose.
These AI-driven browsers, such as the upcoming OpenAI browser with its AI chat interface and Dia with similar features, have the potential to significantly change the landscape of artificial-intelligence technology in web browsing.
