Google faces lawsuit for AI overview in search hurting traffic

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Chegg, a US-based education technology company, has filed a lawsuit against Google, alleging that the search giant’s AI-powered search previews are harming its business by reducing website traffic. 

The dispute centers on Google’s AI Overviews, a feature introduced in Search last year that provides AI-generated summaries at the top of search results. 

These overviews often give users the key information they seek without requiring them to click on external websites, leading to a significant drop in traffic for content publishers like Chegg.

Chegg sues Google over AI impact

Nathan Schultz, Chegg’s CEO, stated that the company is undergoing a strategic review process and has officially lodged a complaint against Google. 

He claims that the AI Overviews have unfairly diverted traffic away from Chegg, negatively affecting the company’s ability to acquire users, generate revenue, and maintain its workforce. 

Schultz also warned that the widespread use of AI Overviews could seriously threaten the broader online media publishing industry, altering the landscape of digital content distribution and affecting the future of online search.

Chegg has expressed concerns that Google’s AI-driven approach could result in a “hollowed-out information ecosystem,” where sources are diluted, reliability is questioned, and trust in online content erodes. 

If AI-generated summaries continue to replace direct visits to educational and informational sites, the long-term sustainability of content providers could be in jeopardy.

In response, Google has dismissed Chegg’s accusations, arguing that AI Overviews improve the search experience by making information more accessible and increasing overall search engagement. 

A Google spokesperson told Reuters that AI Overviews help users discover content more efficiently and drive billions of website clicks daily. 

While early versions of the feature produced some inaccurate or misleading summaries, the technology has since improved significantly. Google maintains that AI Overviews support content discovery rather than suppress it.

While AI Overviews offer convenience by quickly summarizing key points, they also carry the risk of oversimplifying information and omitting critical context. 

Users are encouraged to click on source links within AI Overviews to ensure accuracy and completeness, which lead to the original content. 

Those skeptical of AI-generated summaries can also turn off the feature entirely for a more traditional search experience.

What do you think about this lawsuit against Google? Do you think Google needs to be regulated for its search practices? Tell us below in the comments, or via our Twitter or Facebook.