Bank of America, citing Similarweb data, has reported that despite generative AI chatbots steadily carving out a share of the search market, web traffic for Alphabet (GOOGL.US) has stayed resilient. In August, global daily web visits for the tech giant grew 3% year-over-year to 2.8 billion, while ChatGPT's web traffic slipped 5% to 181 million.

The report highlights that Google's own AI chatbot, Gemini, saw a 261% surge in traffic year-over-year, with Anthropic's Claude jumping 533%, Meta Platforms' (META.US) Meta AI climbing 175%, and SpaceX's (SPCX.US) Grok rising 10%. On a month-over-month basis, Google's August traffic held steady versus July, ChatGPT edged up 4%, Meta AI grew 18%, Claude dipped 1%, and Grok remained flat.

In the U.S. market, analyst Justin Post noted that Google's web visits rose 3% year-over-year to 534 million, while ChatGPT grew 13%—roughly 6% of Google's traffic—Gemini advanced 177%, Claude surged 432%, Meta AI gained 109%, and Grok expanded 24%. Sequentially, Google's U.S. visits were flat, ChatGPT increased 4%, Gemini and Claude each fell 5%, Grok declined 2%, and Meta AI grew 25%.

On the mobile front, ChatGPT's daily active users (DAUs) in August climbed 37% year-over-year to 469 million, whereas Google's mobile DAUs rose 12% to 2.3 billion. Gemini's DAUs grew 284% to 126 million, Claude skyrocketed 1017% to 19 million, Meta AI soared 583% to 5 million, and Grok increased 45% to 9 million. In terms of net additions, Google added 3 million DAUs in August, while ChatGPT, Gemini, and Claude gained 21 million, 7 million, and 400,000, respectively; Grok was flat, and Meta AI's mobile DAUs actually declined.

Post commented that August data indicates Google's traffic and user growth have remained largely stable, while ChatGPT saw a noticeable month-over-month uptick, likely fueled by the back-to-school season. Overall, the numbers suggest AI adoption is broadening the search arena, yet Google's search usage continues to hold firm amidst rapid growth from rivals. Given that ChatGPT now boasts over 1 billion users, its recent foray into advertising—already generating $1 billion in annualized revenue—has drawn heightened investor attention. Considering the Western digital ad market exceeds $600 billion, we don't anticipate a meaningful impact this year, but investor focus on September and October ad performance will intensify significantly.