Search is undergoing one of the biggest shifts since the introduction of mobile-first indexing. Artificial intelligence—once a behind-the-scenes component of Google’s ranking systems—is now taking center stage in the way results are displayed, consumed, and acted upon.

The rise of AI-generated search results, especially Google’s AI Overviews and the newly introduced AI Mode, is fundamentally changing how users discover information and engage with businesses online.

For marketers, SEOs, and business owners, this shift isn’t just technological—it’s behavioral and strategic. The rules of visibility, traffic, and conversions are being rewritten in real time.

In this blog, we examine the actual impact of AI-driven search results, the reasons behind declining click-through rates, and how businesses can prepare for further shifts in the landscape.

What Are AI-Generated Search Results?

AI-generated search results refer to search engine responses that are created using artificial intelligence models rather than simply pulling and ranking existing webpages.

Instead of showing a simple list of links, search engines now provide:

• Summarized answers
• Contextual recommendations
• Step-by-step guides
• Generated comparisons
• Direct actions like booking or buying

In 2024–2025, Google pushed this trend further with:

• AI Overviews – Short, AI-generated summaries shown at the top of results
• Google AI Mode – A new toggle that turns the entire search experience into an AI assistant, capable of handling tasks like planning trips, booking services, generating lists, and more

These features signal a monumental change: Google is no longer just a search engine—it’s becoming a decision engine.

AI Overviews: The Catalyst for Declining Click-Through Rates

When AI Overviews launched widely, early data from multiple SEO platforms showed the same trend:
Click-through rates (CTR) dropped significantly for many query types.

Why? Because the AI answer appears at the very top, before any organic listing—even before ads in some cases.

How AI Overviews Reduce Click-Through Rates

1. They answer the question directly.
   If the AI summary provides a complete answer, users no longer need to click.
2. They compress information from multiple websites.
   This makes the AI overview a “one-stop summary,” replacing what would have been several organic clicks.
3. They push organic listings further down the page.
   On mobile, an AI Overview often occupies the entire first screen.
4. They reduce the need to visit external websites.
   Users get comparisons, suggestions, and explanations without leaving Google.

Which industries feel the most impact?

AI Overviews hit hardest in sectors where search is informational or comparison-heavy:

• Healthcare
• Education
• Recipes & food
• Travel
• Tech tutorials
• Home services
• Local business queries
• Product research

For example, a query like “best places to visit in Bali” previously generated thousands of clicks to travel blogs.
Now, AI Overviews generate a top-level list, greatly reducing organic visits.

Google’s New AI Mode: A More Disruptive Shift

If AI Overviews reduced CTR, AI Mode takes the disruption to the next level.

Google AI Mode transforms search into an interactive AI assistant. Instead of producing answers only, it performs tasks:

• Creates itineraries
• Writes emails and messages
• Generates shopping lists
• Compares products
• Helps plan meals and workouts
• And most importantly, offers booking features

This means users can complete an entire buyer’s journey—with minimal clicks—without ever leaving Google’s ecosystem.

The Addition of Booking Features

Google is now integrating direct booking capabilities powered by AI, allowing users to:

• Book tables
• Schedule appointments
• Reserve travel
• Hire local services

All inside AI Mode.

This replaces what used to be organic traffic to business websites, restaurant directories, travel portals, or booking platforms.

Imagine a user searching:
“Book a haircut near me tomorrow morning.”
AI Mode will now:

1. Recommend nearby salons
2. Compare availability
3. Suggest time slots
4. Offer a one-click booking option directly inside Google

Zero website visits. Zero manual browsing.

This is the future of search—and businesses must adapt.

How AI Mode Affects Click-Through Rates Even More

If AI Overviews reduce CTR by answering questions…

AI Mode reduces CTR by completing actions.

This is a deeper behavioral shift. Users are no longer just reading results—they’re transacting directly inside AI-powered interfaces.

Three Key Changes AI Mode Introduces

1. Fewer Visits to Business Websites

Users can get all the information they need—reviews, pricing, schedules—within AI Mode.

2. Reduced Funnel Stages

Previously, a user might:

1. Search
2. Click a website
3. Explore options
4. Compare
5. Book

AI Mode compresses this into a single step.

3. Google Becomes the Top-of-Funnel + Middle-of-Funnel

Businesses lose valuable traffic traditionally essential for:

• Retargeting
• Email capture
• Lead nurturing
• Website conversions

This shift forces marketers to rethink their acquisition strategy.

Why Google Is Pushing AI More Aggressively

Google’s objective is clear:
Keep users inside Google’s ecosystem longer.

AI-generated experiences:

• Increase user engagement
• Reduce dependency on external websites
• Improve ad targeting
• Enhance the stickiness of Google’s ecosystem
• Protect Google from losing market share to AI tools like ChatGPT, Perplexity, and Claude

Essentially, Google is building a future where the search engine is also:

• A research assistant
• A booking assistant
• A content generator
• A planner
• A conversational AI companion

Organic traffic becomes a secondary priority in this model—and businesses need to prepare accordingly.

What This Means for SEO in 2025 and Beyond

With AI Overviews and AI Mode taking center stage, SEO is no longer just about ranking on the first page.
It’s about earning visibility inside AI-generated summaries and decision flows.

Here’s what brands must understand:

1. Traditional SEO Is Not Enough Anymore

Content that simply targets keywords and ranks well may still appear on Page 1, but:

• It might be invisible beneath an AI Overview
• Users may never scroll far enough to see it
• CTR will likely decline even if the ranking remains the same

High rankings no longer guarantee high traffic.

2. Information-Rich Content Is Being “Summarized Away”

AI Overviews extract:

• facts
• instructions
• insights
• lists

from top-ranking websites and compress them into short summaries.
This reduces the need to visit those original pages.

3. Businesses Must Compete for AI Visibility, Not Just SERP Visibility

Google AI Overview cites sources—sometimes.

Being included in AI Overviews becomes the new battleground.

4. First-Party Data Becomes More Important

If Google reduces organic visits:

• Email lists
• SMS lists
• CRM growth
• Owned community platforms

becomes essential for maintaining reach.

5. Conversion-Focused SEO Will Outperform Traffic-Focused SEO

If traffic decreases, every visitor must count.

Businesses must focus on:

• Strong landing pages
• Compelling offers
• Faster funnels
• Conversion optimization
• On-site personalization

Quality over quantity becomes the mantra.

How Businesses Can Adapt to AI-Driven Search

This shift is big—but not impossible to navigate. Here are effective strategies to stay ahead.

1. Optimize for AI Overviews

AI Overviews pull information from clear, authoritative sources.

To be included:

• Use concise, authoritative writing
• Implement FAQ sections
• Add structured data
• Use schema markup
• Provide step-by-step formats and lists
• Build authority with strong backlinks

Google is more likely to use your content if it’s clean, factual, and structured.

2. Create Content That Can’t Be Summarized Easily

Examples:

• Proprietary data
• Case studies
• Expert interviews
• Original research
• Deep analyses
• Interactive content
• Tools and calculators

AI struggles to summarize unique insights that don’t exist elsewhere.

3. Strengthen Your Local SEO & Booking Integration

With Google prioritizing bookings:

• Ensure Google Business Profile is fully optimized
• Enable Reserve With Google
• Regularly update photos, menus, details, and availability

If Google is becoming the booking engine, your business must meet users where they are.

4. Leverage First-Party Data

Offer:

• Lead magnets
• Mini-courses
• Newsletters
• Worksheets
• Webinar registrations

If you cannot rely on organic traffic long term, lean on owned channels.

5. Develop AI-Friendly Content Clusters

Topic clusters increase trust and content depth—making it more likely Google cites your site in AI summaries.

6. Focus on Brand Building

When AI reduces visibility, a strong brand rescues you.

Users who know you will search for you directly.

The Future: Will AI Kill SEO?

The short answer: No—but it will transform it.

AI will not eliminate SEO, but it will:

• Reduce low-intent informational traffic
• Prioritize high-quality, authoritative sources
• Shift focus from traffic to conversions
• Increase competition for top-level visibility
• Force businesses to embrace new acquisition strategies

SEO is not dying—it’s evolving.

Businesses that adapt early will dominate; those that resist will lose visibility fast.

Final Thoughts

AI Overviews and Google’s new AI Mode with booking capabilities mark a turning point in search history. Search engines are no longer passive directories—they’re active assistants shaping user choices. Yes, click-through rates are decreasing, but brands that evolve with this new paradigm will find new pathways to visibility and conversions.

The future belongs to businesses that embrace:

• AI-optimized content
• First-party data
• Stronger brand identity
• Conversion-focused strategies
• Local integration with Google’s booking ecosystem

Search is changing. SEO is changing.
But opportunities still exist—if you understand where users are going next.