AI Mode, AI Overviews, and traditional Search are becoming one product. What Google’s Q3 earnings call revealed about the agentic era.

Even though Wall Street is panicking over Google’s earnings call, it seems obvious to me what is happening. They are not going to slow down when it comes to AI. Throughout the call, they spoke of agents and how we are in the early days of how they are changing Search. They told us that AI Mode, AI overviews, and traditional Search are becoming one unified product.

They also said to expect rapid improvement because of Recursive Self-Improvement (RSI). Things are about to get very interesting.

I think new opportunities are arising, but also much of the way we have traditionally been able to make money from Search is disappearing.

The main thing I took away from this earnings call is the emphasis on the shift to agentic search. I think this is still unfolding and no one fully knows what this new era of the web will look like. Google gave us a few hints in this call.

I find it fascinating how Google’s stock plummeted after this call. Alphabet’s revenues were up 25% YOY and Cloud revenue was up 103%. The general concern seems to be that Google is pushing AI Mode more, and so far there are fewer opportunities for ads shown in AI Mode. Therefore, revenue from Search is lower than expected. Still, Search advertising is up 12% YOY. (Wall Street was expecting 15%.)

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