How Large Language Models are re-shaping the web economy

AI is transforming business and the workplace at an unprecedented pace. London Business School is dedicated to investing in cutting-edge research that drills down into the implications of AI on business and society, empowering leaders and workplaces to adapt and thrive.

Thanks to philanthropic support, LBS’s faculty is advancing research into GenAI, offering critical insights into the rapid transformation of business, media and education. New research from faculty members Anja Lambrecht and Nicolas Padilla, in collaboration with UCLA, investigates whether Large Language Models (LLMs), such as ChatGPT, are replacing or complementing traditional web searches. In The Impact of LLM Adoption on Online User Behaviour, they assess how the adoption of LLMs affects online search, when use of LLMs displaces broader online activity (and when it doesn’t), the impact on publishers and whether this affects ad exposure. 

1.2 million desktop URL records were analysed from late 2022 to mid-December 2023, narrowed to 2,041 US households that used LLMs for three consecutive weeks. The research showed that when people favour LLMs over conventional ’search-and-click’ web browsing, users visit fewer websites. Decline is strongest for question-based searches, not simple navigational lookups, suggesting that when a GenAI chatbot can summarise an answer, people click less.

The shift to GenAI has significant ripple effects. Traffic tends to concentrate more on big established sites, while smaller search-dependent publishers lose visits. Display ad exposures also fall, though not search ad exposure, especially among heavy online shoppers, which puts pressure on ad-funded media. The research shows that education-related content is particularly affected and likewise visits to sites like Stack Overflow decline as chatbots handle routine queries from students and developers. This shift puts multiple revenue streams at risk.

In the future, publishers may be pushed to create more distinctive content, rethink revenue models and try to meet audiences where they increasingly move: on AI platforms.

By investing in research like this, the School is advancing knowledge that anticipates global change, enabling thought leadership that moves beyond theory and keeps businesses resilient. Your support ensures that LBS continues to deliver real-world impact and remains a trusted source of insight for the challenges of tomorrow.

Read the full article on how GenAI is transforming online consumer behaviour in Think at London Business School.