May 14, 2025 • 8 min read • By Steven Muir-McCarey
Executive Summary
Apple's testimony reveals they're actively considering AI-powered search alternatives to Google, potentially ending a $20 billion annual partnership. This strategic pivot offers critical lessons for enterprises: cannibalise before being disrupted, watch data not drama, and recognise that platform shifts create oligopoly opportunities.
In This Article:
- The $300 Billion Disruption Nobody Saw Coming
- The Innovation Lessons for Australian Enterprises
- What This Means for Your Industry
- The Competitive Intelligence You Need
- Your AI Disruption Readiness Checklist
- The Bottom Line: Disrupt or Be Disrupted
What if the most valuable partnership in tech history , worth $20 billion annually , was about to end, not because of regulation, but because of innovation?
That's exactly what's happening right now between Apple and Google. And it's not just another tech story , it's a masterclass in strategic foresight that every Australian enterprise can learn from.
In a bombshell testimony during Google's antitrust trial on 7 May 2025, Apple's Senior Vice President of Services Eddy Cue revealed something unprecedented: Apple Inc. is "actively looking at" revamping the Safari web browser on its devices to focus on AI-powered search engines, a seismic shift for the industry hastened by the potential end of a longtime partnership with Google.
Even more startling? Cue admitted that searches on Safari declined for the first time in April , a trend he directly attributes to users turning to AI assistants like ChatGPT for their information needs. After 18 years of uninterrupted growth, the traditional search model is showing cracks.
For Australian enterprises watching from the sidelines, this isn't just another Silicon Valley drama. It's a wake-up call that echoes what we're seeing across every industry: AI isn't coming , it's already here, and it's fundamentally changing how business gets done.
The $300 Billion Disruption Nobody Saw Coming
To understand the magnitude of this shift, let's talk numbers:
- Google commands 57% of the $300 billion global search advertising market
- Businesses make $2 for every $1 spent on Google Ads (200% ROI)
- Many advertisers have all of their search advertising with Google because it is practically a monopoly with almost 90% share
Google's dominance seemed unassailable. Yet Apple is now actively considering partnerships with AI-based search providers such as OpenAI, Perplexity, and Anthropic, signaling a fundamental shift in how we access information online.
What's driving this change? The answer is brutally simple: user behaviour.
"
Cue expressed belief that AI search providers, such as OpenAI, Perplexity AI and Anthropic, will eventually supplant standard search engines like Google.
He's not betting on a trend , he's responding to reality. When Safari searches decline for the first time in nearly two decades, you don't need a crystal ball to see where things are heading.
The Innovation Lessons for Australian Enterprises
Apple's strategic pivot offers three critical lessons for every business leader:
1
Cannibalise Your Crown Jewels Before Someone Else Does
Apple is willing to risk a $20 billion annual revenue stream from Google because they see a bigger opportunity. While Cue acknowledged the financial benefits of the current agreement with Google and the potential revenue loss, he also stated his belief that technology shifts, like AI, create opportunities for new entrants and true competition.
Ask yourself
What's your company's equivalent of the Google deal? What sacred cow are you protecting that might actually be holding you back from the next wave of growth?
2
Watch the Data, Not the Drama
Apple didn't make this decision based on hype or headlines. They made it based on hard data. For the first time in Apple's history, searches conducted through Safari declined in April 2025 , a trend that Cue directly attributes to the rising popularity of AI-powered alternatives.
Your action
What leading indicators are you tracking? Not the lagging ones that tell you what happened, but the early warning signals that show you what's coming?
3
Platform Shifts Create Oligopoly Opportunities
This isn't just about search , it's about the entire ecosystem. As of 2024, Google commands 57% of the $300 billion global search advertising market. However, this share is projected to decline as emerging search platforms gain traction in 2025 and 2026, signaling a new era of competition in the search industry.
The message is clear: when platforms shift, market share is up for grabs. The companies that move first don't just participate in the new market , they help define it.
What This Means for Your Industry
The search revolution is just the beginning. Generative AI democratizes search innovation, enabling new players to enter the market and reshape the user experience. Every industry has its own "search moment" coming.
Consider these scenarios:
- Financial Services: What happens when AI advisors can provide personalised investment advice in real-time, making traditional wealth management feel as outdated as Yellow Pages?
- Healthcare: When AI can diagnose conditions from symptoms better than WebMD, will patients still book appointments the same way?
- Education: If AI tutors can provide personalised learning paths, what happens to the traditional course model?
The pattern is clear: AI doesn't just optimise existing processes , it fundamentally reimagines how value is delivered.
The Competitive Intelligence You Need
Here's what the smart money is watching:
1
AI Search Adoption is Accelerating
OpenAI Chief Executive Sam Altman has said ChatGPT boasts more than 800 million weekly active users
2
Investment is Flowing
Perplexity was looking to raise between $500 million and $1 billion in funding at an $18 billion post-money valuation
3
Traditional SEO is Evolving
Traditional SEO tactics like keyword optimization, backlinks, and site speed are evolving to focus on optimizing content for LLMs and multimodal search
This isn't theoretical , it's happening now. And the companies that understand this shift will be the ones writing the rules for the next decade.
Your AI Disruption Readiness Checklist
Before your next board meeting, ask yourself:
- ✓ Have we identified our "Safari moment" , the early indicator that our market is shifting?
- ✓ Do we have a strategy for when our biggest revenue stream becomes our biggest liability?
- ✓ Are we tracking leading indicators of AI adoption in our customer base?
- ✓ Have we mapped which parts of our value chain are most vulnerable to AI disruption?
- ✓ Do we have partnerships or capabilities that position us for the AI-first future?
The Bottom Line: Disrupt or Be Disrupted
Apple's willingness to blow up a $20 billion partnership isn't courage , it's calculation. They see what's coming and they're positioning accordingly. This move represents a major shift for Apple, whose users have relied on Google search in Safari since the iPhone's debut in 2007.
The question for Australian enterprises isn't whether AI will disrupt your industry , it's whether you'll be the disruptor or the disrupted.
The good news? Unlike the consumer market where change happens overnight, enterprise transformation takes time. You have a window to act. But that window is closing faster than most executives realise.
Take Action: Your Next Steps
The shift from search to AI isn't just a technology change , it's a fundamental reimagining of how businesses create and capture value. And just like Apple is rethinking its most valuable partnership, you need to rethink your most fundamental assumptions.
Ready to identify your AI disruption opportunity?
Our Pulse session reveals where AI can transform your market position. Don't wait for your "Safari moment" , create it.
About the Author
Steven Muir-McCarey
Director at LuminateCX
Steven specializes in AI amplification, MarTech optimization, and digital transformation strategies. With extensive experience in customer experience enhancement, he helps organizations leverage technology to create meaningful customer connections.