Is Google's Search Monopoly Under Threat? | The Brainstorm EP 67
Nov 6, 2024
auto_awesome
Brett Winton, ARK Chief Futurist, shares his insights on the competitive landscape of AI search engines and Google's potential vulnerabilities. He discusses how AI-driven platforms threaten Google's dominance by providing more informative responses. The conversation shifts to the evolving economics of rare disease treatments, where innovative therapies could reshape patient care. Winton emphasizes the market's underestimation of one-time treatments, suggesting they offer long-term savings that insurers may increasingly support.
Emerging AI-driven search engines are challenging Google's traditional model by offering more efficient, text-rich responses to user queries.
Innovations in molecular technology for rare diseases highlight the economic advantages of one-time cures over long-term ongoing therapies, reshaping market expectations.
Deep dives
The Threat to Google's Search Dominance
Recent advancements in AI technologies are challenging Google's long-standing supremacy in the search market. New competitors like OpenAI and Perplexity are emerging, offering AI-driven search engines that summarize answers from various sources, which contrasts with Google's link-based results. This evolution in how people access information indicates a pivotal shift in consumer behavior, leading users to favor AI tools for their immediate responses. As AI technology progresses, the concern for Google is that its traditional model could become less relevant, forcing it to adapt to maintain its market share.
Complex Business Models of AI Competitors
The competitive landscape in search includes players with diverse business models and financial stability. Unlike Google, companies like OpenAI and Perplexity are not yet profitable and heavily depend on investment to sustain their development efforts. While Meta also explores AI-driven search, it maintains a more stable business structure, utilizing its vast user base to potentially integrate enhanced search functionalities across its platforms. This diversified approach shows that while some companies are vying to disrupt Google's search, they face unique challenges in achieving profitability and sustainability.
The Economics of Curing Diseases
Innovations in molecular technology are paving the way for potential cures for previously untreatable rare diseases, leading to significant shifts in market perspectives. Contrary to traditional beliefs that curing diseases could harm business profitability, evidence suggests that these cures could actually create more value than ongoing treatment regimens. By calculating lifetime costs for patients, insurers and manufacturers realize that one-time treatments often reduce expenses by avoiding costly hospitalizations associated with chronic conditions. As pioneering treatments hit the market, such as Katshevi for sickle cell disease, there's a strong case for these cures being both beneficial for patients and economically viable.
Market Opportunities in Rare Diseases
The lucrative potential of rare diseases is becoming increasingly evident as the market for innovative cures expands. For instance, the projected revenue from therapies aimed at hereditary angioedema, if targeting even a fraction of the patient population, could yield significant returns for pharmaceutical companies. Many rare diseases lack adequate treatments, resulting in high unmet needs that innovative cures can address, translating into considerable market opportunities. As more companies invest and successfully launch cures, the landscape for rare disease treatments is expected to shift towards a profitable venture for major players in the pharmaceutical industry.
Can you imagine a future without Google? This week, Autonomous Technology and Robotics Director of Research Sam Korus and Associate Portfolio Manager Nick Grous are joined by ARK Chief Futurist Brett Winton to discuss the competitive landscape of AI search engines and the implications for Google, as well as the emerging business opportunities in curing rare diseases through innovative therapies.
If you know ARK, then you probably know about our long-term research projections, like estimating where we will be 5-10 years from now! But just because we are long-term investors, doesn’t mean we don’t have strong views and opinions on breaking news. In fact, we discuss and debate this every day. So now we’re sharing some of these internal discussions with you in our new video series, “The Brainstorm”, a co-production from ARK and Public.com. Tune in every week as we react to the latest in innovation. Here and there we’ll be joined by special guests, but ultimately this is our chance to join the conversation and share ARK’s quick takes on what’s going on in tech today.
Key Points From This Episode:
The future of search may involve a shift to AI-driven operating systems.
Google's search dominance is being challenged by AI competitors.
AI search provides more text-rich responses compared to traditional link-based results.
Insurers are willing to pay high prices for cures based on long-term savings.
The market is underestimating the value of one-time treatments compared to ongoing therapies.
For more updates on Public.com:
Website: https://public.com/
YouTube: @publicinvest
Twitter: https://twitter.com/public
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode