Google Unveils ‘AI Mode’ in Next Phase of Search Overhaul

Google on Tuesday unveiled a major expansion of its artificial intelligence initiatives, signaling a continued transformation of its core search engine—one that’s reshaping how users access information and increasingly limiting traffic to other websites.

As part of its next phase, announced at the company’s annual developer conference, Google introduced a new “AI Mode” for U.S. users. This feature, which aims to make search more conversational—like speaking with a subject-matter expert—comes just two and a half months after limited testing via Google Labs.

Additionally, Google is integrating its latest AI model, Gemini 2.5, into search algorithms and preparing to test features like automated concert ticket purchasing and live video search.

In a broader move reflecting its all-in approach to AI, Google also previewed its return to the smart glasses market. The company announced a new pair of Android XR-powered glasses, developed in partnership with Gentle Monster and Warby Parker. These glasses will include a hands-free camera and a voice-enabled AI assistant—an ambitious follow-up to the ill-fated Google Glass, discontinued over privacy concerns more than a decade ago.

No launch date or pricing has been disclosed for the glasses, which will compete with Meta’s Ray-Ban smart glasses already on the market.

These initiatives build on Google’s transformation over the past year, marked by the rollout of “AI Overviews”—summarized answers generated by AI that appear at the top of search results, often replacing traditional links.

According to Google, roughly 1.5 billion users now regularly engage with these AI Overviews, and search queries are getting longer and more complex.

“We are in a new phase of the AI platform shift, where decades of research are becoming reality,” said Google CEO Sundar Pichai, addressing an audience near the company’s headquarters in Mountain View, California.

Despite Google’s claim that AI Overviews would drive more searches and clicks to external sites, early data suggests otherwise. A recent study by search optimization firm BrightEdge reports a nearly 30% drop in clickthrough rates from Google’s search results over the past year, as users find what they need directly in the AI summaries.

Still, the company’s decision to rapidly scale AI Mode indicates confidence in the technology’s reliability and a clear acknowledgment of growing competition from alternatives like ChatGPT and Perplexity.

These AI-powered search rivals have gained traction fast—so much so that they’re now being cited in antitrust proceedings. During a recent trial, longtime Apple executive Eddy Cue testified that Google searches on Safari are declining due to users increasingly turning to AI alternatives.

Google argues this shift is precisely why the company should only be required to make minor changes to its search operations, as the evolving tech landscape is naturally creating more competition.

For now, however, Google retains a dominant position. The search engine receives 136 billion monthly visits—34 times more than ChatGPT’s 4 billion, according to onelittleweb.com.

When asked whether AI Mode might further cement Google’s dominance, the feature itself responded, “Yes, it is highly likely that Google’s AI mode will make Google more powerful, particularly in the realm of information access and online influence.” It also cautioned that web publishers should be concerned about potential declines in referral traffic.

Upcoming experiments in Google’s Labs division hint at the next wave of innovation. These include:

Project Mariner: Enabling AI agents to book restaurant reservations and buy event tickets.
Live video search: Letting users conduct searches via real-time video feeds.
Deep Search: Offering more comprehensive results for complex topics.
AI integrations: Opt-in access to Gmail and other apps to personalize results.
Graphical data summaries: AI-generated visualizations of sports and finance data.

Finally, Google is launching a premium “Ultra” AI subscription for $250/month. This package includes access to all advanced AI tools and 30 terabytes of storage—surpassing the current $20/month “AI Pro” plan, which offers 2 terabytes.