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Digital platform services inquiry: interim report 9 - revisiting general search services
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 Digital platform services inquiry: interim report no. 9 - revisiting general search services
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This report provides an updated analysis of the Australian search market following the emergence of generative AI. It examines how search engines, particularly Google, are integrating generative AI into their services and explores the potential implications of these changes on search quality.
The report considers issues such as the accuracy and reliability of information, the prominence of website links, potential impacts on result diversity, and response latency. It also explores the potential for increased volumes of low-quality, AI-generated content online and the challenges associated with identifying and addressing this content.
The authors reiterate the recommendations made in earlier reports on search defaults and choice screens and regulatory reform remain relevant to address competition and consumer harms in digital platform service markets.
Key findings
- Google has maintained its dominance in general search in Australia, with a market share of 94% – unchanged since 2021.
- Google's commercial arrangements, which advantage Google Search as the default on the vast majority of Australian devices remain largely unchanged.
- The emergence of generative AI has the potential to further accelerate changes in general search including how search engines formulate results, present information and place ads.
- There is a growing trend of consumers using social media platforms, particularly younger demographics, as an alternative way to search for information.
- The integration of generative AI into search services raises concerns about the accuracy and reliability of information served to users.
- AI-generated search results may reduce the prominence of website links and potentially impact click-through rates.
- The use of generative AI in search may reduce result diversity, limiting consumers' ability to assess and compare information from multiple sources.
- Generative AI is making it easier and cheaper to produce large volumes of content, including low-quality content, which may negatively impact the quality of content on the internet.
