May 7 (Reuters) - Apple ( AAPL ) is "actively looking"

to reshape the Safari web browser to focus on AI-powered search

engines, Bloomberg News reported on Wednesday, citing an Apple ( AAPL )

executive's disclosures in the U.S. Justice Department's lawsuit

against Alphabet.

Apple ( AAPL ) shares fell 2% following the report while

Google-parent Alphabet tumbled more than 6%.

The dispute stems from Apple ( AAPL ) and Google's estimated $20

billion-a-year deal that makes Google the default offering for

queries in Apple's ( AAPL ) included browser, Bloomberg reported.

Eddy Cue, Apple's ( AAPL ) 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 ( AAPL ) 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 ( AAPL ) will add those players as options in Safari in the

future, Cue said, according to the report.