Google rolled out a new smart search mode, AI Mode, that answers questions on the results page. While great for people using Reddit, this update can harm the site as it encourages users to exchange advice and ideas. The bad news for Reddit shares comes from experts expecting fewer people to move from Google search results to Reddit.
How Google’s AI Hurts Reddit
Fewer Visitors From Google
Reddit grew popular partly because Google often showed its links when people searched for advice. For example, searching “best phone under $500” might show Reddit threads where users discuss options. Now, Google’s AI Mode writes summaries using Reddit’s content, so users get answers without visiting Reddit.
Mostly, this is a problem for people who come to Reddit for the first time through a Google search. Half of Reddit’s visitors are bots, and the site makes money by serving ads to them. According to experts, losing 15% to 30% of these visitors could hurt Reddit’s profits.
Stock Price Drops Twice
Reddit’s stock fell 5% after Google announced AI Mode. Earlier in February, Reddit’s stock dropped 15% when Google changed its search system. Investors worry these changes will keep hurting Reddit’s visitor numbers.
Reddit’s Plan to Stay Strong
Loyal Users Are Key
Reddit says its real strength is its active users who log in daily. These users join discussions, post memes, and spend lots of time on the site. They are less likely to leave because they come directly to Reddit, not through Google.
Reddit’s Own AI Tool
Reddit is testing “Reddit Answers,” an AI tool that summarizes posts. For example, asking “How to fix a leaky sink” would show tips from plumbing forums. CEO Steve Huffman says this tool will work alongside Reddit’s messy, real conversations.
Why Reddit Might Survive
People Want Real Opinions
Huffman believes AI summaries cannot replace Reddit’s authentic debates. “Sometimes you want a clean answer from AI,” he said. “Other times, you want real people arguing about the best pizza toppings.”
Making Money Other Ways
Reddit is earning more from deals with AI companies that pay to use its data. It also sells ads to its loyal users, who spend 30% more time on the site than casual visitors.
What Happens Next
Even though Google’s AI may be a threat, Reddit communities are one of a kind. Things like useful cooking ideas and funny jokes about gaming are found exclusively in subreddits, not from AI. If Reddit continues to please its users, it can still be important when search changes.