{
  "id": 17056193,
  "title": "Google Struggling to Make AI Mode Searches Pay",
  "url": "https://urgent.news/2026/10/29/google-struggling-to-make-ai-mode-searches-pay-17056193",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-29T11:00:00.000Z",
  "source": {
    "name": "Slashdot",
    "slug": "slashdot",
    "url": "https://tech.slashdot.org/story/26/10/29/0444201/google-struggling-to-make-ai-mode-searches-pay"
  },
  "original_language": "en",
  "account": "Alphabet's shares plummeted approximately 10% following Google's announcement that AI Mode searches yield fewer revenues than conventional searches, despite overall search revenue increasing by 12% year-over-year to $63.25 billion. According to The Register, Alphabet disclosed its Q3 results, showcasing the highest year-over-year search query growth rate in the past five years. This growth can be attributed to the adoption of Google's latest AI-powered search system, AI Mode. However, Google's search revenue rose by 12 percent year-over-year to $63.25 billion, slightly lower than the 14.5 percent growth reported in Q3 of the previous year. During the earnings call, chief business officer Philipp Schindler attributed the slowdown to \"lower monetization we were seeing in AI Mode.\" This concern is significant given Google's substantial infrastructure spending. In Q3, Alphabet spent $51.4 billion, with around two-thirds allocated to servers and networking equipment, and the remainder funding datacenter construction. This expenditure appears to have impacted profitability, as Alphabet reported $26.17 billion in net income for the quarter. In contrast, Q3 of the previous year, when Google's revenue was $102.35 billion, generated $35 billion in net income. Schindler expressed confidence in AI search, stating that many AI Mode queries are \"upper funnel queries,\" enabling the capture of new, high-value commercial intent. Furthermore, the majority of AI Mode queries are \"incremental,\" generating more monetization opportunities over time. However, Google attempted to capitalize on this opportunity by introducing ads alongside AI Mode searches globally, following initial testing in the US. Nevertheless, AI Mode searches remain less lucrative than Google's existing search business, which contributed to roughly half of Alphabet's $125.8 billion quarterly revenue.",
  "summary": "Alphabet shares fell nearly 10% after Google disclosed that searches through its AI Mode generate less revenue than traditional search, even as overall search revenue grew 12% year over year to $63.25 billion. The Register reports: 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.…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}