Naver is shutting down existing search-related services such as Clova X and related search terms while putting more weight behind AI Briefing and its upcoming AI tab. After shopping, the company is now reshaping its search business around AI as well. One reason appears to be that Google has already demonstrated the effects of integrating AI into search. Since introducing AI into search, Google has seen increases in search time, changes in search behavior and a rise in search frequency.
/ Gemini-generated image
Naver shut down its conversational AI service Clova X and AI search service Cue: as of April 9. Its related search terms service will also end on April 30. The move is part of a broader effort to reorganize its search system around the AI tab and AI Briefing. Naver’s AI tab is an integrated search platform powered by multiple AI agents. AI Briefing refers to AI-generated summaries displayed at the top of Naver’s search results.
The company has already laid out specific AI search plans for this year, including the launch of the AI tab in the first half and an expansion of AI Briefing coverage to 40 percent by year-end. Naver is focusing on the AI tab and AI Briefing in part because AI Briefing has already produced notable results.
“Naver has seen changes in user search behavior over the eight months since the launch of AI Briefing,” CEO Choi Soo-yeon said. “Compared with April last year, searches of 15 characters or more have more than doubled.”
AI Search: Google Has Already Shown the Answer
If Naver’s planned AI tab ends up resembling Google’s AI Mode, its results are expected to be similar as well. Google AI Mode is a conversational search feature that understands the context and intent behind a user’s question and suggests follow-up questions. It is distinct from AI Overview, which simply provides a brief summary at the top of search results. AI Mode is powered by Gemini.
In February, Google CEO Sundar Pichai said on the company’s earnings call that daily searches per user and time spent searching had increased after the introduction of AI Mode and AI Overview. That trend also contributed to growth in Google’s Search and Other revenue. In the fourth quarter of last year, Google posted $63 billion in Search and Other revenue, up 17 percent from a year earlier, driven by strong performance in Search and search advertising.
“Users spend three times more time in AI Mode than in traditional search,” Pichai said. “A significant share of searches in AI Mode leads to follow-up questions.”
Philipp Schindler, Google’s senior vice president and chief business officer, also said, “AI Overviews and AI Mode are driving increases in search usage and overall query volume. Through Gemini-powered improvements in search advertising, we are able to respond more effectively to queries and create more tailored ad creatives for advertisers.”
Also Eyeing Higher Ad Revenue
What Naver is targeting through the AI tab and AI Briefing is broadly similar to Google’s strategy. Beginning in the second half, Naver plans to test AI Briefing with advertising in shopping and place services. As search-related indicators improve, the foundation for expanding advertising revenue also widens.
Earlier, on its February earnings call, CEO Choi Soo-yeon said, “As we operate AI Briefing, we are seeing users enter longer queries. As the way answers are delivered is also changing, we are considering ad products and new inventory that can respond well to this environment.”
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