Google struggling to make AI Mode searches pay

Shares in Google’s parent company Alphabet dived by almost ten percent on Wednesday, after the web giant admitted AI-powered searches earn it less money than it earns by serving ads with its old-school search engine. Alphabet on Wednesday reported its Q3 results, which included news that its year-over-year search query growth rate is the highest it’s been in the last five years. Some of that growth comes from users adopting “AI Mode” – Google’s latest LLM-powered search system.