Many companies have tried to challenge Google Search over the years. Microsoft Bing seemed well-placed to disrupt it when it integrated Generative AI last year, but the hype has faded.
However, Google Search has never seemed so outdated and at risk as it does today. One challenger resisting its dominance is Perplexity AI, a company that’s received extensive coverage in the US but very little attention in Australia.
Andy Konwinski, Denis Yarats, Johnny Ho, and Aravind Srinivas (the current CEO) launched it in 2022 and made headlines after raising almost US$100 million in the past year. Backing from names like Jeff Bezos, Tobias Lütke, and NVIDIA also helped to grab media attention.
Unlike traditional search engines, which often lead users down a rabbit hole of links, Perplexity AI offers a conversational interface, synthesising information from multiple sources to provide direct answers.
Crucially, Perplexity AI automatically shows all its sources – something ChatGPT and Gemini Advance don’t do.
The free version uses a neural network architecture similar to an optimised GPT-3.5, while the paid version combines GPT-4, Anthropic‘s Claude, and other algorithms.
The search experience is much more pleasant than clicking through links. It often speeds up the process and improves the ability to find the right source.
For me, these qualities have transformed Google Search into a support tool rather than my first search option. This shift directly challenges Google’s model, which relies on a massive user base and traffic to sell ads. Perplexity relies solely on subscriptions.
Google could probably implement the same model and kill Perplexity AI tomorrow. But this move would challenge its incredibly lucrative ad model, as no one knows how to monetise AI search conversations.
While Perplexity AI represents a significant leap forward, the battle to make Google Search obsolete is far from over. The new tool must expand its capabilities and refine its user experience, including adding image search and diversifying sources.
However, its threat to traditional search engines is real, offering a glimpse into the future of search in the age of generative AI.
