Alphabet said it continues to see growth in search volumes despite Apple flagging a threat from artificial intelligence.

Apple stands to lose the $20 billion it earns annually from making Google the default search engine in Safari. According to Apple's services chief Eddy Cue, the company is already exploring AI-powered alternatives.

Following Apple mentioning that it was looking to add AI search to the iPhone and perhaps replace Google, shares in the search engine giant dropped over 7% — and Google didn't like it.