Google AI Mode: Shifting Search Dynamics in India

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Google Search announced the launch of ‘AI Mode’ in India powered by Gemini 2.5 following its launch in the US.

According to the Greyhound CIO Pulse 2025, about 72 per cent of Indian digital leaders now prioritise semantic relevance over keyword dominance in their SEO strategy due to AI-native search formats.

India, with its mobile-first, bandwidth-sensitive user base, will test whether AI summaries compete with the nuance and trust built through traditional link ecosystems, said Sanchit Vir Gogia, Chief Analyst & CEO at Greyhound.

As quoted in The Hindu Business Line, in an article authored by Vallari Sanzgiri published on June 25, 2025.

Beyond the Media Quote: Our View, In Full

Pressed for time? You can focus solely on the Greyhound Flashpoints that follow. Each one distills the full analysis into a sharp, executive-ready takeaway — combining our official Standpoint, validated through Pulse data from ongoing CXO trackers, and grounded in Fieldnotes from real-world advisory engagements.

Google’s ‘AI Mode’ in Search Launches in India: A Test of Trust, Speed and Semantics

Greyhound Flashpoint – Google’s AI Mode rollout for Search in India, currently limited to English, signals a bold shift from link-based results to AI-generated summaries. According to the Greyhound CIO Pulse 2025, 72% of Indian digital leaders now prioritise semantic relevance over keyword dominance in their SEO strategy—a shift accelerated by AI-native search formats. Yet this change brings a paradox: while users gain faster answers, enterprises risk diminished control over how their information is surfaced and interpreted. India, with its mobile-first, bandwidth-sensitive user base, will test whether AI summaries can match the nuance and trust built through traditional link ecosystems.

Greyhound Standpoint – According to Greyhound Research, Google’s English-only launch of AI Mode in India is a high-stakes calibration of utility versus localisation. While the underlying Gemini model promises depth and context, the real challenge lies in user trust—especially when AI summaries obfuscate source visibility. Indian users, more so than in Western markets, still value transparency and traceability, particularly in health, finance, and government-related queries. Moreover, enterprises must prepare for a reduced role in traffic capture, as AI-generated snapshots de-link search results from source websites. This calls for a fundamental rethink in content architectures, with a growing need for structured, machine-readable data that aligns with generative models.

Greyhound Pulse – The Greyhound CIO Pulse 2025 reveals that 63% of Indian CMOs and Heads of Digital Strategy are concerned about declining organic visibility due to generative AI overlays in search. In verticals such as BFSI and pharma, 58% of CIOs flag compliance concerns over AI summaries presenting partial or decontextualised advice. The sentiment is particularly strong among enterprises reliant on long-tail SEO and programmatic content pipelines, where AI summaries risk flattening brand differentiation and nuanced positioning. Despite this, 46% of leaders acknowledge that AI summaries improve user satisfaction in high-volume, low-involvement queries—such as FAQs and generic product comparisons.

Greyhound Fieldnotes – Per a recent Greyhound Fieldnote from a Tier 1 Indian digital lending firm headquartered in Mumbai, the marketing head noted a significant dip in click-through rates for brand-linked queries post-AI Mode trials. Users were receiving financial product summaries directly in search, often stripped of disclaimers and lacking links to the firm’s authoritative pages. This triggered urgent conversations between compliance, product, and content teams, resulting in a new structured content schema designed for AI engines. However, the firm struggled with attribution gaps—AI summaries frequently paraphrased their advice without traceable credit. Similar frictions are emerging in edtech and consumer health, where AI-generated content risks misinforming or decontextualising sensitive guidance.

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