Seek and Destroy: AI’s Challenge to Google’s Business Model

This case places students in the shoes of a senior executive at Google, as she grapples with how the firm should respond to generative AI. On one hand, it is imperative for Google to effectively compete in the AI "arms race" with Anthropic, OpenAI, and DeepSeek. On the other hand, a simultaneous, and more pressing, question involves Google’s ability to adapt the company’s underlying business model to the age of AI. Even if Google’s Gemini is able to demonstrably outcompete ChatGPT, Claude, or Copilot on functionality, how should Google correspondingly adapt its monetization model to move away from its long-dominant revenue model of online paid search? The case examines the challenge faced by the dual objectives of investing in technological capability while also adapting an underlying business model. It is suitable for MBA or executive education courses on strategy, technological disruption, and business and society.