Google’s AI summaries are changing search. Now it’s facing a lawsuit

The way people search the internet has changed in the past two years, with companies now using AI to synthesize and summarize results, eliminating the need to click through to websites. This shift has negatively impacted businesses that rely on search traffic, including educational tech firm Chegg, which has sued Google in federal district court. Chegg alleges that Google's AI-generated summaries of its content have siphoned traffic from its site and harmed its revenue, with the company reporting a 24% year-on-year revenue decline in Q4 2024. Google has responded that it will defend itself in court, arguing that AI overviews have diversified traffic distribution and that it sends billions of clicks to websites daily. The lawsuit has sparked anxiety within the SEO industry, with experts expressing concerns over Google's lack of transparency and the potential impact on organic traffic. Research has shown that Google's featured snippets have led to a drop in traffic for affected sites, but the true impact of AI overviews on user behavior is still unclear. Not all companies are feeling the squeeze, with Ziff Davis CEO Vivek Shah stating that AI overviews had little effect on its web traffic. The outcome of Chegg's lawsuit could have massive implications for millions of sites beyond just Chegg, and experts believe it could be a pivotal moment in the fight over AI and SEO. The case will be closely watched, with many waiting to see how the court rules on the issue. Ultimately, the lawsuit highlights the need for greater transparency and understanding of the impact of AI on search traffic and online businesses.