[FLASH] Alphabet says AI Mode's lower monetization weighed on Search growth; will scale AI-surface ads globally
Search & other revenue rose 12% to about $63B, below estimates for a second straight quarter, while query growth hit a five-year high. CBO Philipp Schindler said strong growth in AI Mode queries 'had an impact because of the lower monetization we were seeing in AI Mode.' He also said currency effects were the single largest driver of the slowdown. CNBC reported that the shares fell about 13% on Oct 29, Alphabet's largest one-day decline on record. UBS and Mizuho said the results revive fears that AI is cannibalizing Search. Google says it is now scaling ads in AI Overviews and AI Mode to more users, taking AI Mode ads outside the US and launching multi-turn ads in the US. What to watch: any disclosure of AI Mode ad load, CPC or revenue figures, which Google did not give.