Google Q3: AI Drives Search Growth

Google’s Q3 Report: AI Features Drive Growth in Search Activity

Google’s third-quarter report has revealed that artificial intelligence (AI) is not replacing traditional search activity but rather helping to expand it. The company highlighted that AI-led features, such as AI Mode and AI Overviews, are generating additional engagement and contributing to steady traffic to websites across the web. This marks a shift in how users interact with Google Search, showing that the integration of AI is fuelling more searches rather than diverting them.

According to the company’s data, both general and commercial search queries have grown year on year, with the pace of growth accelerating in the third quarter compared to the previous one. Google attributed much of this increase to the rollout and success of AI Mode and AI Overviews, both of which have become key components of its search strategy.

During the Q3 earnings call, Google CEO Sundar Pichai referred to this as an “expansionary moment for Search.” He stressed that the company’s AI features are designed to showcase the best of the web by driving clicks to websites, rather than keeping users contained within Google’s ecosystem. Pichai emphasised that Google sends billions of clicks to publishers and creators daily, reinforcing that AI does not diminish online visibility for site owners.

One of the biggest highlights from the report was the rapid rise of AI Mode. Pichai described its growth as “strong and consistent,” particularly in the United States, where usage doubled over the quarter. He added that AI Mode is now available globally in 40 different languages, reaching an impressive 75 million daily active users. The feature’s popularity underscores the growing demand for AI-powered search experiences among global audiences.

Google also shared that it had implemented over 100 updates and improvements to AI Mode during the third quarter alone. These changes were aimed at refining user experience, improving accuracy, and offering more context-rich answers. The company views these developments as part of its long-term vision to make AI a seamless part of everyday search activity.

AI Overviews, another central feature, has shown similar success. Pichai stated that the feature continues to “drive meaningful query growth,” and its impact in Q3 was even stronger than before. He added that younger audiences, in particular, have embraced AI Overviews, suggesting that newer generations of internet users are more comfortable interacting with AI-led information.

Financial Performance and Key Figures

Alphabet, Google’s parent company, reported a record-breaking quarter with total revenue reaching $102.3 billion — its first ever to surpass the $100 billion mark. Within this figure, “Google Search & Other” brought in $56.6 billion, up significantly from $49.4 billion in the same period last year. The results highlight the ongoing strength of Google’s core business, even as AI integration accelerates.

YouTube also contributed notably to the company’s financial performance. Advertising revenue for the platform hit $10.26 billion in Q3, and according to Pichai, YouTube has retained its top position as the leading streaming platform for watch time in the United States for more than two consecutive years. This achievement demonstrates YouTube’s ability to compete successfully against major streaming rivals.

Interestingly, Pichai noted that YouTube Shorts — the platform’s short-form video feature — is now generating more revenue per watch hour than traditional in-stream videos. This shift reflects changing viewer habits and shows how Google continues to adapt to the growing demand for quick, engaging video content.

The report also addressed the European Commission’s $3.5 billion fine against Alphabet, which had an impact on the company’s margins during the quarter. However, when excluding that charge, Google’s operating margin stood at 33.9%, maintaining a strong profitability level that reassures investors of the company’s financial stability.

What It Means for Search and Marketers

Google’s message to investors and marketers was clear: AI-led features are expanding the search landscape. Instead of taking away traffic from traditional searches, these features are adding new types of queries and sessions. For businesses and marketers, this means the search ecosystem is evolving, but not shrinking.

In practical terms, this shift implies a redistribution of search activity within Google’s own platforms. AI Overviews and AI Mode are creating new entry points for information discovery, which may influence how users interact with search results. For marketers, adapting strategies to appear within these AI-led experiences will likely become a key focus moving forward.

Despite the encouraging figures, one point remains unclear — Google did not release any specific data on outbound click rates from AI experiences or introduce any new reporting tools to track these interactions. This means that businesses and marketing professionals will need to rely on their own analytics systems to assess how AI search impacts visibility and user behaviour.

Still, the overall financial performance suggests strong advertiser confidence in Google. The growth in “Search & Other” revenue and the increase in commercial query volumes indicate that brands are continuing to invest heavily in Google Ads, even as AI-led search formats evolve. The balance between paid and organic visibility remains central to many marketing strategies, especially as AI plays a bigger role in content delivery.

Looking Ahead: What’s Next for Google AI

Looking towards the future, Google is showing no signs of slowing down its AI development. The company plans to continue expanding its AI-powered search tools, and Pichai confirmed that Google is preparing to release Gemini 3, its next-generation AI model. This model is expected to enhance both AI Mode and AI Overviews, offering more sophisticated responses and a deeper understanding of complex queries.

The company also described Chrome as “a browser powered by AI,” suggesting that more integrations with Gemini and AI Mode are on the way. These enhancements are expected to introduce new intelligent browsing features, including personalised recommendations and proactive search assistance.

To support these ambitious developments, Google has raised its capital expenditure forecast for 2025 to between $91 billion and $93 billion. This increase will help fund further AI research, infrastructure, and hardware investments — all of which are vital for sustaining the company’s rapid growth in this field.

The takeaway from Google’s Q3 report is clear: artificial intelligence is becoming a powerful growth engine for the company’s search business. With users embracing AI-driven tools at record levels, Google appears well-positioned to continue leading the global search market.

For marketers, the continued rise of AI in search means it’s more important than ever to stay informed, test new strategies, and adapt quickly. As AI Overviews and AI Mode become increasingly common, understanding how to maintain visibility across these evolving search surfaces will be essential.

Ultimately, Google’s latest earnings confirm that AI is not the end of traditional search — it’s the next phase of its evolution. The challenge now lies in how businesses, marketers, and creators will navigate this new era of AI-led discovery while ensuring they remain visible in a rapidly changing online environment.