Google's new AI Mode comes as a threat to publishers in terms of clicks and revenue

Google’s latest AI-powered search enhancements, called the AI Mode, sound like a big threat. Many global publishers and digital media outlets claim that these features are already disrupting their traffic and revenue models. AI Overviews display AI-generated summaries at the top of search results, often answering users' questions directly without requiring a click to the original source. This is triggering alarms across the industry, especially for outlets that rely heavily on search-driven ad revenue.

 According to a Digiday report, publishers such as The Sun have experienced a 40% drop in global unique monthly users since the feature began rolling out more widely.

Triggering alarm for the traditional SEO

This is quite alarming for the industry, especially for outlets that rely heavily on search-driven ad revenue. Estimates have also revealed that AI Overviews could cause a 25% drop in traffic, resulting in an annual industry-wide revenue loss of up to $2 billion.

For decades, publishers have relied on Search Engine Optimisation (SEO) to drive visibility. But Google's AI Mode, which paraphrases content in a conversational chat format, could make ranking first in search results practically meaningless.

It has been debated that pages optimised for traditional SEO may be skipped over if the AI generates a summary with no source attribution. Some publishers fear that only content specifically structured to be summarised will gain visibility, a shift that undermines organic discovery.