Samsung’s latest update to both the AT&T and Sprint versions of the Galaxy S3 has removed the universal search feature from the phone. Now, when using the Google search bar you only get web results and not things that match the search locally on the device itself. While unfortunate, Samsung did this to avoid having the SGS3 banned from being sold in the U.S. due to the same lawsuit Apple filed against the Galaxy Nexus. Of course, being one of the benefits of having Android, if you really want your universal search back all you have to do is replace it with the old version.
Source: Android Central