Google-parent inventory drops on fears it might lose search market share to AI-powered rivals


Share post:


Shares of Google-parent Alphabet fell greater than 3% in early buying and selling Monday after a report sparked issues that its core search engine might lose market share to AI-powered rivals, together with Microsoft’s Bing.

Final month, Google workers realized that Samsung was weighing making Bing the default search engine on its units as a substitute of Google’s search engine, prompting a “panic” inside the corporate, in response to a report from the New York Instances, citing inside messages and paperwork. (CNN has not reviewed the fabric.)

In an effort to handle the heightened competitors, Google is alleged to be creating a brand new AI-powered search engine known as Mission “Magi,” in response to the Instances. The corporate, which reportedly has about 160 folks engaged on the venture, goals to alter the way in which outcomes seem in Google Search and can embody an AI chat device obtainable to reply questions. The venture is anticipated to be unveiled to the general public subsequent month, in response to the report.

In an announcement despatched to CNN, Google spokesperson Lara Levin mentioned the corporate has been utilizing AI for years to “enhance the standard of our outcomes” and “supply totally new methods to go looking,” together with with a function rolled out last year that lets customers search by combining photographs and phrases.

“We’ve accomplished so in a accountable and useful method that maintains the excessive bar we set for delivering high quality info,” Levin mentioned. “Not each brainstorm deck or product thought results in a launch, however as we’ve mentioned earlier than, we’re enthusiastic about bringing new AI-powered options to Search, and can share extra particulars quickly.”

Samsung didn’t instantly reply to a request for remark.

Google’s search engine has dominated the marketplace for 20 years. However the viral success of ChatGPT, which may generate compelling written responses to consumer prompts, appeared to place Google on protection for the primary time in years.

In March, Google started opening up entry to Bard, its new AI chatbot device that straight competes with ChatGPT and guarantees to assist customers define and write essay drafts, plan a buddy’s child bathe, and get lunch concepts based mostly on what’s within the fridge.

At an occasion in February, a Google govt additionally mentioned the corporate will carry “the magic of generative AI” straight into its core search product and use synthetic intelligence to pave the way in which for the “subsequent frontier of our info merchandise.”

Microsoft, in the meantime, has invested in and partnered with OpenAI, the corporate behind ChatGPT, to deploy comparable know-how in Bing and different productiveness instruments. Different tech corporations, together with Meta, Baidu and IBM, in addition to a slew of startups, are racing to develop and deploy AI-powered instruments.

However tech corporations face dangers in embracing this know-how, which is understood to make mistakes and “hallucinate” responses. That’s notably true in the case of serps, a product that many use to search out correct and dependable info.

Google was called out after a demo of Bard supplied an inaccurate response to a query a few telescope. Shares of Google’s father or mother firm Alphabet fell 7.7% that day, wiping $100 billion off its market worth.

Microsoft’s Bing AI demo was additionally known as out for several errors, together with an obvious failure to distinguish between the kinds of vacuums and even made up details about sure merchandise.

In an interview with 60 Minutes that aired on Sunday, Google and Alphabet CEO Sundar Pichai confused the necessity for corporations to “be accountable in every step alongside the way in which” as they construct and launch AI instruments.

For Google, he mentioned, meaning permitting time for “consumer suggestions” and ensuring the corporate “can develop extra strong security layers earlier than we construct, earlier than we deploy extra succesful fashions.”

He additionally expressed his perception that these AI instruments will finally have broad impacts on companies, professions and society.

“That is going to affect each product throughout each firm and in order that’s, that’s why I believe it’s a really, very profound know-how,” he mentioned. “And so, we’re simply in early days.”


Please enter your comment!
Please enter your name here


Related articles

Coveted Chrome Hearts Hoodie   Exploring Their Allure and Availability 

The coveted Chrome Hearts hoodie has captivated fashion fans around the world with its unique combination of luxury...

Essentials Clothing: A Fashion Staple

Introduction Welcome to the ultimate guide on Essentials Clothing, Essentials hoodie, and Tracksuits! If you're seeking trendy fashion essentials...

Why Custom Boxing Gloves Are Essential for Injury Prevention

Afraid of potential injuries that can occur during intense encounters? You’re not alone! The fear of getting severely...

Why Personalized Boxing Gloves are a Must-Have for Every Fighter

Personalized boxing gloves are surely a game-changer for fighters! You can now opt for more intense and injuryless...