Google is making waves in the AI sphere. Their newly launched “AI Mode,” presented at Google I/O 2025, aims to recapture ground lost to ChatGPT and burgeoning competitors such as Perplexity.
As Elizabeth Reid, Google’s head of search put it, this feature looks to move “beyond information to intelligence,” re-imagining the search engine. At least initially focused on travel, AI Mode looks to streamline planning, booking, and personalization. But will it actually deliver, or will it, perhaps, become another casualty of Google’s tendency to shelve projects?
AI Mode: Redefining Search
Set to first appear in the United States, AI Mode adds a new button next to voice and image search. It lets users ask involved questions and get advanced, multimodal responses. It does this by not just providing links, like conventional search. Instead, AI Mode splits queries into subtopics, runs hundreds of simultaneous searches, and delivers a fully cited “expert report” in a matter of minutes. What does this mean for travelers? Well, a conversational, tailored experience, leveraging past searches, Gmail data, and even personal preferences, could suggest custom itineraries, restaurants, and local activities.
By way of example, imagine asking, “What to do in New Orleans this weekend with friends? We are big foodies and we love music.” AI Mode might recommend, for instance, terrace restaurants and suggest music events located near a user’s hotel, using flight and hotel bookings mined from Gmail. The Mariner project goes even further, automating actual tasks like ticket purchases by analyzing hundreds of options across different websites, automatically filling out forms, and then finalizing bookings via Google Pay. Experts emphasize that instead of juggling 25 links, generative AI gives a sourced answer and a final link, leading to a purchase in 100% of cases.
Transforming the Travel Industry
The travel applications of AI Mode could really shake up traditional players, the online travel agencies (OTAs) and price comparison sites, specifically. It may bypass intermediaries, integrating real-time data on flights, hotels, and activities, and creating a relatively seamless, end-to-end travel planning experience. This system also raises the bar for personalization, with its ability to utilize data from Gmail and past searches. That being said, it also sparks privacy concerns. Many airlines and hotels now reserve their best rates for direct bookings. Consequently, AI Mode could potentially sideline OTAs and comparison platforms that rely on scraping rates, perhaps threatening their very business models.
Google’s pivot also puts its own advertising-driven revenue model to the test. OTAs currently spend considerably on keyword ads. However, AI Mode might shift budgets toward “agent access fees” for algorithmic preference, which mirrors trends in agentic AI ecosystems. Travel suppliers, meanwhile, must adapt. Building robust first-party data and direct booking incentives is critical to competing in this new AI-driven landscape.
Challenges and Skepticism
Despite the buzz, AI Mode definitely faces some potential hurdles. User adoption is, of course, uncertain. Google’s Gemini platform lags behind ChatGPT (with 350 million users versus 800 million). A recent study in The Conversation, for example, showed that AI-generated search summaries had “no real impact” on click-through rates, or perceived usefulness or relevance. This suggests that AI Mode might be more gimmick than game-changer. It’s also worth noting Google’s history of abandoning projects—they shelved 160 tools, sites, and services back in 2019. This inevitably raises some doubts about the longevity of AI Mode.
Legal challenges, too, add to the complexity. Lawsuits in the U.S. threatening Google’s dominance could delay AI Mode’s rollout. Also, “legal uncertainty” has already delayed AI features such as AI Previews in France. Privacy concerns over accessing Gmail and search histories may deter users who are already wary of intrusive tracking.
A High-Stakes Bet
AI Mode is indeed a radical shift for Google. The search engine now wants to position itself as a travel concierge that could outmaneuver OTAs and comparison sites. It does this by automating complex tasks and delivering hyper-personalized results. That, at least, is the aim. The present-day traveler has high expectations. The fate of this new AI Mode, though, depends heavily on whether users come to trust it, how smoothly it operates in practice, and, perhaps significantly, whether Google can break free from its past struggles with launching successful new projects. The travel sector is clearly anticipating a shake-up, and so AI Mode is potentially set to either fundamentally alter the way travel plans are made or, conversely, may just become one more almost-forgotten venture in Google’s long and checkered history of striving for success but often falling short of expectations.