Apple is "actively looking at" reshaping the Safari web browser on its devices to focus on AI-powered search engines, Bloomberg News reported Wednesday, a move that could chip away at Google's dominance in the lucrative search market.

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Apple executive Eddy Cue testified in the U.S. Justice Department's antitrust case against Alphabet, saying searches on Safari fell for the first time last month, which he attributed to users increasingly turning to AI, the report said.

Google is the default search engine on Apple's browser, a coveted position for which it pays Apple roughly $20 billion annually, or about 36% of its search advertising revenue generated through the Safari browser, analysts have estimated.

Losing that position could deepen pressure on the company at a time it is already facing tough competition from AI startups such as ChatGPT-maker OpenAI and Perplexity. Apple has already tied up with OpenAI to offer ChatGPT as an option in Siri.

Alphabet shares fell 6%, while Apple was down about 2%. Both companies did not respond to Reuters' requests for comment.

Cue said he believes AI search providers, including OpenAI and Perplexity AI, will eventually replace standard search engines such as Google, and that Apple will add those players as options in Safari in the future, according to the report.

"We will add them to the list — they probably won’t be the default," Bloomberg News cited Cue as saying.