At Google I/O 2025, the tech giant unveiled AI Mode in Search, a transformative feature powered by Gemini 2.5, designed to redefine how users interact with search engines. Moving beyond traditional “blue links,” AI Mode offers deep, conversational, and agentic search capabilities, positioning Google at the forefront of AI-driven discovery.

However, this innovation arrives amid intensifying antitrust scrutiny. The U.S. Department of Justice (DOJ) has accused Google of maintaining an illegal monopoly in search, raising questions:

• Will AI Mode reinforce Google’s dominance, or does it signal a shift toward fairer competition?
• Can AI-generated answers reduce reliance on third-party publishers, further disrupting the web ecosystem?
• How will regulators respond to Google’s deepening AI integration in search?

This in-depth analysis explores:

• How AI Mode works and its key features
• The antitrust implications of AI-powered search
• Competitive threats from OpenAI, Perplexity, and others
• Impact on publishers, privacy, and the future of search

What Is AI Mode in Google Search?

A Paradigm Shift from Links to AI-Generated Answers

AI Mode represents Google’s most aggressive push yet into generative AI search, offering:

Conversational Search

• Users can ask follow-up questions without restarting queries.
• “Query fan-out” breaks complex searches into sub-topics, running multiple searches in parallel.

Deep Search (Google Labs Feature)

• Generates expert-level research reports by scanning hundreds of sources in minutes.
• Includes citations but may reduce direct traffic to publishers.

Search Live (Voice + Visual Search)

• Real-time camera-based queries (e.g., “Identify this plant” via Google Lens).
• Voice conversations for hands-free, multi-turn interactions.

Agentic Capabilities

• Autonomous task execution: Books tickets, reserves restaurants, tracks prices.
• Shopping integration: Virtual try-ons, AI-powered price comparisons, one-click checkout.

Data Visualization

• Analyzes datasets to generate charts, graphs, and summaries on demand.

Powered by Gemini 2.5: The Brains Behind AI Mode

Google confirmed AI Mode runs on a custom-tuned version of Gemini 2.5, its most advanced multimodal LLM, optimized for:

• Accuracy (reducing hallucinations via retrieval-augmented generation).
• Speed (sub-second responses for most queries).
• Personalization (opt-in data sharing from Gmail, Docs, etc.).

The Antitrust Dilemma: Will AI Mode Help or Hurt Google’s Case?

DOJ’s Core Argument: AI as a Monopoly Extender

The U.S. government’s antitrust case hinges on claims that:

• Google controls ~90% of search, stifling competition.
• AI Mode could deepen lock-in, making users even more reliant on Google.

DOJ Warning (2024 Trial): “Google’s AI search tools are not innovation—they’re just another way to reinforce dominance.”

Google’s Counterarguments

Competition Exists

• Points to ChatGPT (OpenAI), Perplexity, and Arc Search as viable alternatives.
• Eddy Cue (Apple) testified that AI chatbots are reducing Google’s Safari search volume.

Changing User Behavior

• 1.5B+ monthly users now use Google Lens for visual search.
• AI Overviews drive 10%+ more searches in the U.S. and India.

Voluntary Adoption

• AI Mode is opt-in, with classic search remaining available.

Stock Market Reaction

After Cue’s testimony revealed Safari’s declining search volume, Alphabet’s stock dropped 8%. Google quickly reassured investors:

• “Overall search queries are growing, just in new ways.”

AI Mode’s Impact on the Web Ecosystem

Threat to Publishers and Content Creators

• Fewer clicks to external sites: If AI answers queries directly, publishers lose traffic.
• Case Study: After AI Overviews launched in 2024, some blogs saw 30% fewer visits.

Privacy Concerns

• Personalized Context pulls data from Gmail, Drive, and Calendar (opt-in).
• Potential for deeper tracking to refine AI responses.

Competitive Landscape: Can Rivals Keep Up?

Competitor	AI Search Approach	Key Advantage
OpenAI (ChatGPT)	Real-time web browsing + shopping	Microsoft-backed, deep Azure integration
Perplexity	Citation-heavy, research-focused	Less ad-driven, transparent sourcing
Arc Search	AI summarization + “Browse for Me”	Privacy-first, no profiling

Google’s Edge:

• Unmatched scale (trillions of search data points).
• Seamless Android/Chrome integration.

Regulatory Outlook: What’s Next?

Possible DOJ Actions

Forced Divestiture

• Splitting Google Search from Android/Chrome.

Mandatory API Access

• Requiring Google to share search data with rivals.

Stricter AI Transparency Rules

• Disclosing training data sources for Gemini.

Google’s Best Defense? Proving AI Mode Is a Net Benefit

• If AI Mode lowers ad dependency (via subscriptions or premium features).
• If it drives innovation (e.g., helping small businesses via AI agents).

Conclusion: Is AI Mode a Game-Changer or a Monopoly Reinforcer?

Google’s AI Mode in Search is undeniably revolutionary, offering:

✅ Deeper, faster, more intuitive search.
✅ Agentic capabilities (booking, shopping, research).
✅ A bridge toward true AI assistants.

But the antitrust risks remain:

❌ Potential for further market entrenchment.
❌ Erosion of publisher revenues.
❌ Increased regulatory scrutiny.

Final Verdict:

• For users: AI Mode is a major upgrade.
• For regulators: It’s evidence Google isn’t backing down.
• For competitors: The race to AI-native search is now existential.

The coming months will decide whether AI Mode saves Google from breakup—or gives regulators more ammunition.