Perplexity CEO Dares Google to Choose Between Ads and AI Innovation

Key Takeaway:

• Perplexity CEO Aravind Srinivas urges Google to choose between protecting ad revenue or embracing AI-driven browsing innovation.
• As Perplexity’s Comet browser pushes AI-first features, a new browser war looms, challenging Google’s traditional business model.

In a candid Reddit AMA, Perplexity AI CEO Aravind Srinivas criticized Google's reluctance to fully embrace AI agents in web browsing. He believes Google faces a critical choice: either commit to supporting autonomous AI features that reduce ad clicks or maintain its ad-driven model and suffer short-term losses to stay competitive.

Srinivas argues that Google’s deeply entrenched advertising structure and bureaucratic layers are impeding innovation, especially as Comet, a new browser from Perplexity, pushes AI agents that summarize content, automate workflows, and offer improved privacy. He described Google as a “giant bureaucratic organisation” constrained by its need to protect ad revenue.

Comet, currently in beta, integrates AI tools directly within a Chromium-based browser, allowing real-time browsing, summarization, and task automation via its “sidecar” assistant. Srinivas warned that large tech firms will likely imitate Comet’s features, but cautioned that Google must choose between innovation and preservation of its existing monetization model.

Industry experts are watching closely as a new "AI browser war" unfolds. While Google may eventually incorporate ideas from Comet, such as Project Mariner, Srinivas remains confident that Perplexity's nimble approach and user-first subscription model give it a competitive edge.

Google’s AI Can Now Make Phone Calls on Your Behalf

Key Takeaway

• Google's Gemini AI can now call local businesses for users directly through Search to gather information or book services.
• The feature uses Duplex technology and is available in the U.S., with opt-out options for businesses and premium access for AI Pro users.

Google has taken a major step forward in AI-powered assistance by rolling out a new feature in the U.S. that allows its Gemini AI to make phone calls to local businesses directly through Google Search. This tool, first tested earlier this year, lets users request information like pricing, hours of operation, and service availability without ever picking up the phone.

When someone searches for services such as pet grooming, auto repair, or dry cleaning, they may now see an option labeled “Ask for Me.” If selected, Gemini will use Google’s Duplex voice technology to place a call to the business. The AI introduces itself as calling on the user’s behalf, asks relevant questions, and then returns the response to the user via text or email.

This move transforms the search experience into a more active and intelligent assistant. Users can now delegate simple but time-consuming tasks like making inquiries or scheduling appointments. It’s part of Google’s broader strategy to make AI more agent-like, capable of taking real-world actions on behalf of users.

Credit: Google

Businesses that don’t want to participate in this feature can opt out using their Google Business Profile settings. For users, the functionality is available across the U.S., but those subscribed to Google’s AI Pro and AI Ultra plans benefit from more usage credits and access to advanced Gemini models like Gemini 2.5 Pro. These premium tiers also include features like Deep Search, which can generate in-depth research reports on complex topics using AI reasoning.

As AI integration deepens in everyday apps, this feature showcases a new phase of interaction, where digital tools not only inform but also act on our behalf. Google’s move reflects the future of AI as not just a search engine assistant, but a personal concierge for real-world tasks.

Google’s Discover Feed Gets AI Summaries, Alarming Publishers.

Google has quietly introduced AI-generated summaries into its Discover feed on the Google Search app, a move that’s already sparking alarm across the publishing industry. With this update, users in the U.S. using Android and iOS devices will now see short, three-line summaries instead of traditional article headlines and source names when browsing trending topics in categories like entertainment and sports.

How does it work?

The summaries are produced by Google’s in-house artificial intelligence models and combine information from multiple sources. These summaries appear at the top of the Discover cards, with a small overlay of icons that indicate how many sources were used to generate the content. Tapping on the icons opens a list of original sources, which users can then click on to read the full articles. A subtle “See more” link expands the summary, and each summary is accompanied by a disclaimer that states: “Generated with AI, which can make mistakes.”

While this change might improve user convenience by offering quick insights without needing to click through, it is generating strong backlash from digital publishers. Industry experts warn that AI summaries could accelerate the existing trend of "zero-click" behavior, where users find their answers directly on Google's platform and no longer visit the actual news sites. Publishers argue that this could deal yet another blow to traffic volumes that are already declining due to previous algorithm changes and the growing prominence of AI-powered search features.

Why Publishers Are Concerned.

Recent data supports these concerns. According to analytics firm Similarweb, traffic to news sites from Google Search has sharply decreased, falling from over 2.3 billion visits in August 2024 to under 1.7 billion by May 2025. During that same period, the number of searches ending without a single click rose from 56% to 69%. Several digital media outlets, including BuzzFeed News, Laptop Mag, and Giant Freakin Robot, have either shut down or significantly downsized in recent months, loss of referral traffic cited as a contributing factor.

Independent publishers in Europe have gone a step further by filing an antitrust complaint with the European Commission, alleging that Google’s AI-driven tools undermine competition and fail to offer publishers meaningful options to opt out of AI training or display. Similar complaints are also under consideration by the UK’s Competition and Markets Authority, putting regulatory pressure on Google to reconsider how it integrates AI into search and content feeds.

Despite mounting criticism, Google maintains that AI summaries help users explore a broader range of content and that its platforms still drive billions of clicks to publishers every day. The company also introduced monetization tools like Offerwall, which allows publishers to generate revenue through subscriptions, micropayments, and newsletter signups. However, many industry voices argue that such measures are insufficient to counteract the loss of direct web traffic.

As the rollout continues, media companies are grappling with how to adapt. Some are testing their own AI tools to produce summary-style content in a format optimized for visibility within Google's evolving ecosystem. Outlets like Yahoo, Bloomberg, and The Wall Street Journal have started experimenting with article highlights and bullet-point takeaways to compete within the AI-influenced landscape. Still, concerns remain that even these efforts may not be enough to recover lost visibility and revenue.

In the coming months, Google is expected to expand the AI summary feature to cover additional content categories and possibly introduce it in international markets. Meanwhile, publishers and regulators alike are closely watching how this move will affect the future of digital journalism, news distribution, and the broader internet economy. The tension between technological advancement and fair access to digital audiences continues to intensify, with the stakes higher than ever.