Google’s (GOOGL) AI Tools Are Causing Sharp Drops in Traffic to News Websites

A new report from The Wall Street Journal says that Google’s (GOOGL) AI Overviews and chatbots are causing a sharp drop in traffic to news websites. Since these AI tools provide direct answers, users no longer need to click on traditional blue links, which is leading to fewer referrals for publishers. As a result, many news outlets are now rethinking their business models and making more job cuts. “Google is shifting from being a search engine to an answer engine. We have to develop new strategies,” said The Atlantic CEO Nicholas Thompson.

Interestingly, the report cites Similarweb (SMWB) data showing that traffic from organic search has fallen steeply for several major publications. Indeed, HuffPost’s traffic has more than halved in three years, while the Washington Post has seen a similar drop. Washington Post CEO William Lewis warned that AI-generated answers pose “a serious threat to journalism.” In addition, Business Insider’s traffic dropped by 55% from April 2022 to April 2025, which led it to cut 21% of its staff.

Unfortunately, other content categories are being hit as well. In fact, Google’s AI Overviews have also cut traffic to vacation guides, health advice, and product review sites. And, according to the report, Google’s upcoming “AI Mode” is expected to make the situation even worse. Surprisingly, though, the Wall Street Journal itself has seen an increase in total organic search traffic over the past three years. However, organic search now accounts for a smaller share of its total traffic, down to 24% from 29%, according to Similarweb.

Is Google Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $199.11 per share implies 11.5% upside potential from current levels.

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