Google lose more than $100 billion after AI chatbot Bard give wrong answer in ad

 Google Lost to Chatgpt?

Alphabet Inc, the parent company of Google, suffered a significant blow on Wednesday as its stock value plummeted by $100 billion after the inaccurate information shared by its new chatbot. Bard caused concern that the tech giant is losing ground to rival Microsoft.

The company's shares dropped by 9% during regular trading and only slightly recovered after hours. This comes after the stock lost 40% of its value in the past year, but had regained 15% this year, prior to Wednesday's losses.

The error in Bard's advertisement was pointed out by Reuters, who reported that the chatbot had shared inaccurate information about the first satellite to take pictures of a planet outside the Earth's solar system.

This comes after Microsoft-backed startup OpenAI wowed consumers with its AI software in November, which accurately answers simple prompts.

Google's presentation on Wednesday failed to impress and lacked details on the integration of Bard into its core search function. This was in stark contrast to Microsoft, who held an event the day before to showcase its Bing search with ChatGPT functions already integrated.

Google Vs Chatgpt

According to Gil Luria, a senior software analyst at D.A. Davidson,

 "Google has fallen asleep on implementing AI technology into their search product" and the presentation was "rushed and the embarrassing mess up of posting a wrong answer during their demo."

The error has highlighted the need for rigorous testing, which Google will be starting this week with their Trusted Tester program. The company is under pressure to keep up with OpenAI and its rivals and is reportedly bringing in founders Sergey Brin and Larry Page to accelerate its efforts.

However, King Lip, chief strategist at Baker Avenue Wealth Management, cautions that concerns about Alphabet may be overstated, as Microsoft's Bing still has a long way to go to match Google's search capabilities.

Google is beaten by Microsoft in AI search Engines

AI-driven search is becoming increasingly popular as it promises to provide results in plain language, making browsing faster and more efficient. However, chatbot AI systems also carry risks for corporations due to inherent biases in their algorithms, which could result in skewed results or plagiarism. This highlights the importance of rigorous testing and quality control in AI technology.

At the time of writing, the Bard ad had been viewed over a million times on Twitter (economictimes.indiatimes, 2023).

Google parent company Alphabet's share price took a hit on Wednesday, falling 9% during regular trading raise a lot of questions?  Is google is going to get beaten by its arch rival Microsoft in this race? Microsoft recently invested around $10 billion in OpenAI (nytime, 2023), a startup that released AI software in November that has garnered a lot of attention and positive reviews for its accurate and well-written responses. In the response, Google launched its own search engine named as Bard.

Google's live-streamed presentation on Wednesday failed to impress investors and provided no information on when and how Bard would be integrated into the search function. In contrast, Microsoft had already released a version of their Bing search integrated with ChatGPT functions. 

The error in the Bard video and the lackluster presentation caused Google shares to drop 40% last year, however, the company's stock has rallied 15% so far this year, excluding Wednesday's losses.

On the other hand, Microsoft's shares rose by 3% on Wednesday (bloomberg, 2023), reflecting the growing appeal of AI-driven search. AI has become a major focus for tech executives, with the technology being mentioned six times more often in recent earnings calls compared to prior quarters. AI-driven search has the potential to provide results in plain language, making browsing faster and more efficient. However, chatbot AI systems can also carry risks due to inherent biases in their algorithms that can skew results, sexualize images, or even plagiarize. 

Will Bing Replaces Chatgpt?

Google and SEO Will Be Dead?

The battle between Google and Microsoft in AI technology is still ongoing and will likely continue to heat up in the coming months. Both companies are facing challenges and are grappling to stay ahead of the competition. Only time will tell who will emerge as the ultimate winner in this AI race.

As the competition heats up between Google and Microsoft in the AI-driven search market, it's difficult to predict which company will come out on top. However, there are a few factors to consider when analyzing the two tech giants.

Google has been a leader in AI innovation for several years, with products such as Google Assistant and Google Duplex. However, their recent stumble with the inaccurate information shared by the chatbot Bard has raised questions about their ability to integrate AI into their core search function. On the other hand, Microsoft has been making significant strides in the AI-driven search market, with the recent release of a version of its Bing search integrated with ChatGPT functions.

Google Vs Microsoft Market Shares

In terms of market value, Microsoft holds the advantage with a market cap of $1.63 trillion, compared to Alphabet's market cap of $1.15 trillion. Additionally, Microsoft has been performing well in recent quarters, with a revenue growth of 12% in Q3 2020, while Alphabet saw a decline in advertising revenue during the same period.

Despite these advantages, Google still holds the edge in terms of search dominance, with Google search capturing over 90% of the global search engine market share, compared to Microsoft's Bing with a mere 2.83% (theverge, 2023).

The Bottom Line

Overall, the battle between Google and Microsoft in the AI-driven search market is far from over and it will be interesting to see how each company continues to develop and integrate AI technology in their products. As the AI industry continues to grow, it's possible that new players will emerge and shake up the competition. Ultimately, it will be up to consumers to decide which company provides the best AI-driven search experience.

Bibliography

bloomberg. (2023). Microsoft’s Dollar Alarm Raises New Worry for Software Stocks. Retrieved from bloomberg: https://www.bloomberg.com/news/articles/2022-06-03/microsoft-s-dollar-alarm-raises-new-worry-for-software-stocks

economictimes.indiatimes. (2023, Feb). Google shares lose more than $100 billion after AI chatbot Bard flubs answer in ad. Retrieved from economictimes.indiatimes: https://economictimes.indiatimes.com/tech/technology/google-shares-dive-8-after-ai-chatbot-bard-flubs-answer-in-ad/articleshow/97745778.cms

nytime. (2023). Microsoft to Invest $10 Billion in OpenAI, the Creator of ChatGPT. Retrieved from nytime: https://www.nytimes.com/2023/01/23/business/microsoft-chatgpt-artificial-intelligence

theverge. (2023). Microsoft is now more valuable than Google. Retrieved from theverge: https://www.theverge.com/2018/5/30/17408254/microsoft-google-alphabet-market-cap-value