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May 25, 2025, 11:19 p.m.
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Google’s AI Mode Launch Challenges Reddit’s Search Traffic and User Engagement

Last week, Google announced the launch of a new AI-powered search feature called AI Mode. This development could pose challenges for Reddit. Over the past year, Reddit has experienced significant growth, largely due to Google prioritizing Reddit links in its search results and because users often seek human perspectives on an internet increasingly filled with AI and automated bots. At Google I/O last week, CEO Sundar Pichai described AI Mode as a "total overhaul" of Google’s search experience. Unlike the traditional list of links, AI Mode will provide users with a more conversational interface, often delivering information sourced from Reddit without requiring users to visit the site directly. This change will mainly impact Reddit’s logged-out visitors, who are typically casual users without accounts. In contrast, logged-in users—Reddit’s regular audience—represent the core of the platform. Much of Reddit’s recent growth has come from logged-out users directed via Google Search. Following the announcement, Reddit’s stock fell nearly 5% on Monday, as Wells Fargo projected a decline in Reddit traffic due to Google's increasing use of AI features in search. This is not the first time adjustments to Google’s search algorithm have negatively affected Reddit’s stock. In February, Reddit's shares dropped over 15% after CEO Steve Huffman noted in an earnings call that traffic experienced "volatility" during the fourth quarter following a Google search algorithm update. While search algorithms frequently evolve—something familiar to digital news outlets—Wells Fargo suggests that the recent disruptions to Reddit’s user activity are "likely more permanent" because user behavior is adapting to Google’s AI enhancements. Nonetheless, Reddit maintains that its business is primarily driven by logged-in users who access the site directly. “At Reddit, much of our product development focuses on growing and engaging our logged-in users, who form the foundation of our impressions and inventory due to their deep engagement with the platform, ” said Reddit Chief Operating Officer Jen Wong at the Morgan Stanley Technology, Media, & Telecom Conference in March.

“This isn’t existential for us—the business remains very healthy because it is powered by logged-in members. ” Additionally, Reddit offers its own AI-powered search feature called Reddit Answers, which provides responses by aggregating relevant content from posts on the platform. Ultimately, Huffman remains optimistic about Reddit’s position on the internet, emphasizing the value of human interaction. “There’s no doubt large language models (LLMs) will transform internet search—we all see that, and it’s exciting, ” he said during an earnings call earlier this month. “Sometimes, people will want AI-generated summarized and annotated answers, which we are even developing with Reddit Answers. But other times, they seek the subjective, authentic, messy, and diverse perspectives that Reddit offers. ” He added, “For the past decade, Reddit has served as an alternative to traditional social media—which can be performative and curated—by providing genuine community discussions. Similarly, Reddit communities and conversations will continue to offer an alternative to AI-generated search answers. ”



Brief news summary

Google recently introduced AI Mode, an AI-powered search tool offering a conversational experience instead of traditional link lists. This change could negatively impact Reddit, which has grown significantly due to Google prioritizing its links and users seeking human input amid growing AI content. AI Mode may reduce traffic from Reddit’s logged-out, casual visitors who find the site through Google Search, a concern reflected in Reddit's stock dropping 5% after Wells Fargo predicted decreased traffic. Past Google search changes have similarly caused traffic volatility. However, Reddit emphasizes that its core logged-in users, who drive engagement and revenue, remain strong. The company has also developed its own AI search tool, Reddit Answers. Reddit CEO Steve Huffman believes that while AI will evolve search, Reddit’s unique human interactions and diverse viewpoints will ensure it remains a vital, alternative platform to both traditional social media and sterile AI-generated answers.
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