AI Search: Perplexity, Google AI Mode, ChatGPT Search — 2026-10-24
This week, the tension between AI search engines and content publishers intensified, with a federal court dismissing antitrust claims against Google’s AI Overviews while a major copyright lawsuit against Perplexity advances toward trial. Simultaneously, Google updated its AI Mode to include more inline links in an effort to mitigate publisher traffic losses, which data shows have dropped by over 40% in the past year.
AI Search: Perplexity, Google AI Mode, ChatGPT Search — 2026-10-24
Top developments
Federal Court Dismisses Antitrust Claims Against Google’s AI Overviews
A federal court has dismissed three antitrust lawsuits alleging that Google’s AI Overviews violate competition laws by tying search results to AI summaries. The court ruled that answering a query with AI content improves search utility rather than constituting an illegal tie, though a separate case involving Yelp remains pending. This ruling provides temporary relief for Google as it expands AI Mode globally, but it does not resolve ongoing copyright disputes regarding content usage.
Perplexity Copyright Case Nears Trial as Valuation Soars
The copyright lawsuit filed by Dow Jones and the New York Post against Perplexity has cleared fact discovery, moving the case closer to trial. This legal pressure coincides with reports that Nvidia is lining up to invest in Perplexity at a valuation exceeding $30 billion, while the startup handles over a billion searches monthly. The juxtaposition of high valuation and active litigation highlights the risky legal landscape for AI search startups.
Google Updates AI Mode to Include More Links
In response to criticism over traffic diversion, Google is updating AI Mode and AI Overviews to display clearer inline links, official-site sections, and wider news carousels. These changes aim to surface "original content, firsthand perspectives, and trusted sources" more effectively within AI-generated answers. The update is a direct attempt to balance the utility of AI summaries with the need to drive traffic to publishers.
Publisher Traffic Declines Sharply Despite AI Updates
Data from Chartbeat indicates that Google search referrals to publishers fell by 40.2% in the last year, while AI chatbots currently send only 0.01% of traffic. Despite Google’s recent link updates, Semrush data shows AI Overviews now appear on 88% of tracked commercial keywords, yet actual click-through rates from these AI features remain thin.
Local view
In the UK, the Competition and Markets Authority (CMA) is facing pressure from publishers to rethink rules allowing them to opt out of Google’s AI Overviews. Critics argue that in a "two-sided market," opting out is ineffective because it removes visibility without securing compensation, while the European Publishers Council continues to push for stricter antitrust enforcement against Google’s use of publisher content.
Context & numbers
- AI Overview Penetration: AI Overviews now appear on 88% of tracked commercial search keywords.
- Referral Rates: AI Mode queries have a referral rate of only 1.6–2.5%, compared to 17–19% for traditional Google search.
- Perplexity Scale: Perplexity now handles over a billion searches per month, with revenue roughly tripling since March.
- Citation Accuracy: A Tow Center study highlighted a significant gap in citation accuracy, noting a 37% vs 67% difference between AI search engines in their ability to accurately cite sources.
On the radar
- Anthropic Fair Use Ruling: A key fair use ruling for Anthropic is awaited, which could set a precedent for how AI companies train on copyrighted data, while Perplexity heads toward a jury trial in its copyright disputes.
- New AI SEO Services: Agencies are launching specialized "AI Search Optimization" services to help brands track visibility across ChatGPT, Perplexity, and Google AI, reflecting the shift from traditional SEO to LLM visibility.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
