Google's era ends as AI reshapes internet economy, slashing website visits

For decades, a website's success hinged on its Google search ranking, directly correlating with advertising, subscription, affiliate, or sales revenue. This established economic equilibrium, where content creators produced material and Google directed users to it, is now fundamentally challenged by the rise of AI-powered search engines.

AI tools like ChatGPT, Gemini, and Perplexity now offer comprehensive answers directly within search results or applications. Users increasingly receive information without needing to click through to the source website. This bypass significantly impacts the traffic flow that has sustained online businesses and publications.

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I think we are witnessing the biggest transformation of the internet since Google's inception.

Alexandru Dan, an AI expert and CEO of TVL Tech, describes this as "the biggest transformation of the internet since Google's inception." He notes that while content creators continue to invest resources, the number of users reaching their sites is declining. This translates to fewer ad impressions, reduced commercial opportunities, and lower overall revenue.

Data supports this trend. A Pew Research Center study, cited by Dan, found that users accessed traditional results in only about 8% of searches featuring AI-generated summaries, compared to 15% in searches without them. Furthermore, only about 1% of users opened one of the AI's cited sources. This fundamental change is shifting the internet economy "from a traffic-based economy to a response-based economy."

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From this reason, the internet economy is gradually shifting from a traffic-based economy to a response-based economy.