Google’s AI Overviews cut clicks, increasing costs for everyone

When you ask Google today, it often answers on the page—not with links. That shift is now the focus of a major U.S. lawsuit and a formal complaint in Europe. Pew’s latest research shows clicks fall when an AI Overview appears, pushing brands toward pricier paid channels and raising customer acquisition cost (CAC). Google says Overviews broaden discovery and spread traffic to more sites.

Rob Lalka, a Tulane University business professor and author, can map the move from search to answer engines: how Google kept dominance, where the economics change for brands, and practical fixes.

Google users are less likely to click on links when an AI summary appears in the results
In a March 2025 analysis, Google users who encountered an AI summary were less likely to click on links to other websites than users who did not see one.

“Google is shifting from directing people to the web to answering questions itself—often without showing sources. That move weakens open, transparent search and makes results feel more like a pay-to-play auction. The stakes go beyond traffic: control of attention, time, and data—forcing companies to pay more to win them back,” Lalka said.

Rob is available to speak further and is quick to respond if you’re on a deadline.

For interviews, contact Roger Dunaway at roger@tulane.edu or 504-452-2906.