GPO’s State of Search and AI: August 2025

Discover the latest changes in AI-driven search, user behavior, and traffic shifts in the August 2025 State of Search and AI update from the GPO team.

With AI tools like ChatGPT on the rise and Google’s AI Overviews reshaping how we access information, the search landscape is evolving faster than ever. To keep our clients informed and stay ahead of the curve, we’ve been compiling internal State of Search and AI recaps that track major developments and their impacts. Now, we’re making these insights public.

Search Changes Leading Up to Now

Although we’ve shared State of Search and AI internally for some time, this is our first public edition. Here’s a quick look at the search updates that brought us to August:

• AI Mode Officially Launched & Expanded: AI Mode went live in May 2025, transforming search into a conversational experience. By July, Google AI Mode was live and showed diverse sourced citations across platforms (desktop, mobile, browser types).

• AI Overviews (AIOs) Dominated & Expanded: AIOs hit 1.5 billion monthly users by May, fueling a 10% year-over-year growth in searchers. By June, AIOs began replacing the traditional 3-pack, pushing Map Packs further down the page and impacting local search.

• Generative AI Became Default Result: In June, Google CEO Sundar Pichai confirmed that AI Mode features would soon become standard across all web results, making generative answers the new default search experience.

How Has User Behavior Shifted?

The mass adoption (and in some cases, forced adoption) of AI-powered search tools has significantly altered user behavior in 2025. The biggest shift? A growing gap between organic impressions and clicks. Other notable trends include:

• Click-Through Rates Dropped Sharply:  CTRs are down an average of 30% across all queries and as much as 50–60% for informational searches, as users increasingly find answers in AI-generated summaries.

• Searches Are Longer and More Conversational: By June, 70% of all Google traffic was driven by long-tail keywords (5+ words), reflecting a move toward more specific, intent-rich queries.

• ChatGPT Became a Search Powerhouse: Reaching ~30 million iOS downloads in 28 days by July, ChatGPT now rivals top social apps and is becoming a mainstream search and research tool, with many users opting for it over Google.

What Was New in August 2025

Three key developments stood out for us in August, each with meaningful implications for digital marketers and brands. 

Google Web Guide Launched in Labs

This new feature offers AI-clustered results, notably without ads or Local Pack results but with more links. It’s a clear sign that Google is exploring hybrid SERPs that blend traditional search formats with AI functionality.

What this means for marketers: Structured, credible content matters more than ever.

Google Is Testing Ads in AI Mode

Google has started monetizing AI Mode, marking a shift from experimental rollout to monetized product. This update introduces new pressure on already limited organic real estate.

What this means for marketers: Your brand should aim to be cited directly within AI responses above the fold, where visibility still matters most.

AI Traffic Surged (and Converted Better)

AI-driven traffic has jumped 357% year-over-year, with over 1 billion monthly visits. Even more notable? Conversion rates from ChatGPT referrals are up to 9x higher than from Google in some verticals. Users discovering brands through AI often return directly to those brands later in the funnel, though this kind of direct traffic can be harder to attribute.

What this means for marketers: Organic traffic may slow, but AI exposure can boost conversions and direct visits from more qualified, high-intent users.10

August Case Study: Homepage Traffic Wins for Furniture Client

Two trends continue to shape our client performance:

1. The split between impressions and clicks
2. The rise in AI-driven traffic

Thanks to GPO’s strategic, high-quality content, one client in the home furnishings space has been prominently featured in AI answers — and it’s paying off.

• Their homepage pulled in 103K visits year-to-date (a 39% increase).
• Direct traffic is up 19%.
• Organic traffic continues to climb.

This performance aligns with the “brand recall loop” we’re seeing industry-wide: AI assistants introduce the brand, and consumers remember the name and return directly — often with more intent. We’ve seen the engagement to support this. Users are spending an average of 2.5 minutes on the site, indicating active evaluation, not just casual browsing.

Looking Ahead

As search continues to evolve, so should your analysis. Monitor changes in user behavior carefully, especially if blog or subdomain traffic is down. You might find that homepage traffic is up, revealing a shift in how users navigate after their AI encounters.

Stay tuned for more monthly insights. And if you’re seeing unusual traffic patterns, we’d love to hear about it.