Apple looks to add AI search to company's browser, Bloomberg reports

May 7 (Reuters) - Apple AAPL.O is "actively looking" to reshape the Safari web browser to focus on AI-powered search engines, Bloomberg News reported on Wednesday, citing an Apple executive's disclosures in the U.S. Justice Department's lawsuit against Alphabet.

Apple shares fell 2% following the report while Google-parent Alphabet GOOGL.O tumbled more than 6%.

The dispute stems from Apple and Google's estimated $20 billion-a-year deal that makes Google the default offering for queries in Apple's included browser, Bloomberg reported.

Eddy Cue, Apple's senior vice president of services, noted that searches on Safari dipped for the first time last month, which he attributed to people using AI, according to the report.

Apple and Google did not immediately respond to Reuters' request for comment.

Cue said he believes that AI search providers, including OpenAI, Perplexity AI and Anthropic, will eventually replace standard search engines like Google, Bloomberg reported.

Apple will add those players as options in Safari in the future, Cue said, according to the report.