Tech giant Google (GOOGL) has started testing AI-generated summaries in its Discover feed, which is the main news section within the Google Search app on iOS and Android. Instead of just showing a headline from one publication, users now see a summary written by AI, along with logos from multiple news sources in the top-left corner. So far, the feature only appears for some stories, which suggests that it is still being tested. Along with AI summaries, Google is also trying to find other ways to display the news in Discover.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Indeed, some articles now include bullet points under the headline, or are grouped with similar stories, even if they aren’t labeled as AI-generated. At the same time, publishers such as Bloomberg and USA Today, as well as startups like Particle, are experimenting with their own AI tools to summarize stories or answer follow-up questions. As a result of these new tools, many publishers are worried about losing website traffic. This is because features like AI Overviews give users answers without needing to visit a site, which means fewer people are clicking on news links.
Although Google recently introduced “Offerwall” to help publishers earn money through ads, surveys, or one-time payments, it may ultimately not be enough. In fact, according to The Economist and Similarweb (SMWB), global search traffic dropped by 15% year-over-year as of June 2025. News searches that led to no clicks rose from 56% to nearly 69% in a year, and organic traffic fell from over 2.3 billion visits to under 1.7 billion. While Discover was once a reliable source of clicks, that may soon change if AI summaries become more common.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 28 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $202.24 per share implies 10.2% upside potential from current levels.
