Google's Innovator's Dilemma: Sundar Answers the Bell with AI Mode in Search

You're at a pivotal moment in the company's history today. Have you read the innovator's dilemma? I'm obviously very very familiar with the concept. I don't think I've read the book actually, but but you know, it's one of those things which is so much in the ether you think you know it. I say it in justest because that's the talk of the town, the talk on Wall Street, the talk in Silicon Valley. Is Google getting disrupted in this moment? Consumers are asking AI questions through chat interfaces. They're getting complete answers. They're engaging with AI systems in a way that they traditionally didn't do with the classical search interface. Is Google at risk of being truly disrupted

from AI? Is the core search business, which the ad revenue on search is about a $200 billion run rate out of 360 billion of your total revenue most of your profits? Is Google being disrupted by AI at this moment or is Google leading? I view this as an extraordinary opportunity for search. We launched AI overviews about a year ago. Getting the feedback from AI overviews recently. We testing it in labs. There's a whole new dedicated AI experience called AI mode coming to search. And in AI mode, you can have a full-on AI experience in search, including follow on conversational queries. People are typing in queries like literally long paragraphs. So we are seeing people

respond. We kind of know what works. Users are are our northstar and empirically we see that people are engaging more and using the product more. Right? So to your question about innovators dilemma, I think the dilemma only exists if you treat it as a dilemma. All along in technology, you have these massive periods of innovation and you lean into it as hard as you can. It's the only way to do