What is the strategic future of Google with the emergence of artificial intelligence?
What is the strategic future of Google with the emergence of artificial intelligence?
By early 2025, AI was threatening Google's core business. Chatbots offered by OpenAI, Anthropic and Perplexity were offering conversational alternatives to keyword search, potentially disrupting Google's search advertising business, from which it earned nearly $200 billion annually. Amazon was capturing increasing share of search ad revenue. Courts had ruled against Google in two antitrust cases concerning online search and advertising technology. Google had also been slow in responding to the introduction of ChatGPT. But it was rapidly integrating AI into its products and increased its AI investment to $75 billion in 2025. The case asks students to evaluate CEO Sundar Pichai's options: Should Google disrupt its own search business? Should it accelerate investments in other products, such as YouTube, Google Cloud and Waymo? And how should it monetize and rationalize its growing AI investments?
About the Author(s)
