Google has quietly rolled out a new feature called AI Mode within its search engine, fundamentally altering how millions of Britons access information. Instead of the traditional list of blue links that direct users to external websites, AI Mode generates a single, comprehensive answer using the company’s Gemini large language model. The shift means users may never leave Google’s ecosystem, effectively ‘cannibalising’ the open web that publishers, bloggers and small businesses rely on for traffic.
For UK businesses, the implications are stark. Many independent retailers, local news outlets and niche service providers depend on Google Search for the majority of their online visitors. If AI Mode becomes the default, those referral clicks could plummet, cutting off a vital revenue stream. ‘This is existential for digital publishers,’ said Dr Helen Mortimer, a digital economy researcher at the University of Bristol. ‘Google is both the gatekeeper and the competitor — and it is using its power to keep users inside its own garden.’
The regulatory landscape in the UK is already under strain. The Information Commissioner’s Office (ICO) is scrutinising how AI models consume and republish web content, particularly when it comes to copyright and data protection. Separately, the EU’s AI Act, which applies to UK firms operating in Europe, requires transparency about training data and the impact on content creators. ‘If Google’s AI Mode is trained on publisher content without fair compensation, that could breach both UK copyright law and the spirit of the AI Act,’ noted Charlotte Webb, a technology lawyer at London-based firm Keystone Legal.
For consumers, the change promises convenience — instant answers without clicking multiple links. But there are hidden costs. Users may receive less diverse viewpoints, as the AI model relies on a curated dataset. Local businesses that once appeared in search results could become invisible, reducing competition and choice. ‘The web was built on openness. AI Mode turns it into a walled city,’ said James Harding, a former BBC director and now a media consultant.
The economic consequences for the UK could be severe. According to a recent study by the Centre for Digital Innovation, small and medium-sized enterprises (SMEs) generate roughly £150bn in annual revenue from online channels, much of it driven by Google referrals. If AI Mode reduces that traffic by even 20%, the loss could exceed £30bn — a blow to the broader economy at a time when the UK is already struggling with low growth. ‘We are sleepwalking into a digital monopoly,’ warned Baroness Martha Lane Fox, a crossbench peer and tech entrepreneur. ‘Regulators must act before the web becomes a ghost town.’
What happens next depends on how quickly UK regulators respond. The ICO is expected to publish guidance on AI-driven search within the next six months, while the Competition and Markets Authority (CMA) is considering a formal market investigation into Google’s dominance. Google has stated that AI Mode is ‘experimental’ and that it remains committed to ‘supporting a healthy web ecosystem’. But critics argue that the company’s actions speak louder than its words.