Perplexity's Challenge to Google Search: The Future is Conversational

The battle for the future of search is heating up, with AI-powered answer engine Perplexity positioning itself as a serious challenger to Google's dominance. In this article published in The Age, I shared my thoughts on why this David vs Goliath story matters for every business thinking about AI.

Perplexity's approach is fundamentally different from Google's traditional search model. While Google has built the world's most lucrative business around link-clicking and advertising revenue, Perplexity focuses on direct answers and revenue sharing with publishers. The numbers are impressive: they've grown from 4 million to 30 million daily queries in just 18 months, with Australians making 10.7 million queries per month.

"I doubt that Perplexity could ever dethrone Google, but yes, they could take a bite out of their market share," I noted in the interview. "With generative AI being such a transformational change in how people use the internet, there has never been a better time to challenge the incumbents."

What's particularly fascinating is Perplexity's timing. Founded in 2022 just as AI models became sophisticated enough to summarise web content, they're now launching their own browser called Comet. Google's challenge is operating "with two hands tied behind its back" because their advertising model conflicts with providing direct answers.

For Australian businesses, this represents a significant opportunity. Perplexity is prioritising Australia as a growth market, with partnerships planned that could dramatically increase local traffic.

As the internet evolves from something we explore with clicks to something we converse with, the future of search is becoming increasingly clear: it's not about finding links, it's about getting answers.

Read the full article here to learn how AI is reshaping the search landscape - https://www.theage.com.au/technology/this-company-wants-to-dethrone-google-but-does-it-have-a-shot-20250530-p5m3jj.html