Google Relies on Artificial Intelligence for Antitrust Defense

In the digital age, Artificial Intelligence is not only celebrated as an innovator but also strategically employed to address legal challenges. The latest example: Google is now leveraging the AI hype to argue against a potential antitrust case from the US Department of Justice. In a blog post, the tech giant supports its position by referring to the flourishing AI market and the resultant changes in search behavior. The Department of Justice is considering measures to strengthen competition in the search engine market. Google criticizes the move as both consumer- and innovation-unfriendly. Lee-Anne Mulholland, Google's Vice President for Regulatory Affairs, emphasizes that the current shift in technology brings forth new competitors and technologies like AI—a point she believes the government is neglecting. However, not all analysts view the AI argument as a strong defense. While some, like Dan Ives from Wedbush, acknowledge the positive aspect regarding monopoly accusations, other experts remain skeptical. Gil Luria from DA Davidson argues that the Department of Justice intervenes precisely for these technological reasons, to prevent Google's dominant position from leading to further monopolization in AI-driven search. Google's commitment to AI, however, also carries risks. The transition to AI-driven search could fundamentally change Google's revenue model. Analysts fear that Google might jeopardize its proven ad system if it relies on AI-based solutions. While advertisers may be willing to pay higher premiums for AI integrations, the monetization of future searches remains uncertain. Additionally, there are regulatory concerns. The US Federal Trade Commission is currently investigating the AI investments of tech giants like Microsoft, Amazon, and Google, particularly concerning partnerships and mergers.