As of December 2025, AI-powered search engines like Perplexity AI and Microsoft Copilot are not replacing Google as the dominant search engine in Australia, but they are increasingly influencing how users discover information and represent a significant shift in search technology.
Google currently maintains approximately 94% market share in Australia (as of December 2025 data from StatCounter). However, AI search operates differently. Instead of providing a list of links, these platforms synthesise information from multiple sources to directly answer a user’s query, citing those sources. Microsoft Copilot, now integrated into Windows 11 and available via Bing in Australia, uses OpenAI’s models. Perplexity AI, also accessible in Australia, focuses on providing concise, sourced answers. Google’s Search Generative Experience (SGE), currently in Search Labs for some Australian users, is Google’s direct response, integrating AI overviews into traditional search results. In 2026, we anticipate SGE will become more widely available, and further refinements to AI-powered summarisation will occur. These AI overviews are designed to appear at the top of search results, potentially reducing clicks to traditional website listings. Google’s AI features are subject to Australian consumer law and privacy regulations.
Ultimately, AI search functions by leveraging large language models to understand user intent and generate comprehensive responses based on indexed web content, rather than simply directing users to websites.
