Google shares are down after AI presentation

Google Since ChatGPT debuted OpenAI in late 2022, leaving other tech companies in the dust, the competition for AI technology has accelerated.

Particularly Google is falling behind and has been making efforts to catch up.

To disastrous results, the business staged an event on Wednesday to showcase their AI chatbot named Bard.

The outcome was that Alphabet, the parent company of Google, ended trading with its shares down more than 7%.

The news

Microsoft gave a demonstration of new AI technology on its Bing search engine on Tuesday.

The event’s success led Google to imitate it.

Google had earlier that day verified news of its Bard announcement and stated that the AI technology will be released over the next weeks.

The presentation

Google execs discussed Bard’s capabilities on Wednesday during the event.

The benefits and drawbacks of AI were presented in a presentation.

LaMDA (Language Model for Dialogue Applications), the company’s well-known language model, powers Bard.

In a blog post published on Monday, Google stated that before making chat technology more generally accessible, “trusted testers” will be given access to it.

The business displayed updates to other products including Maps and Google Lens throughout the event.

Alphabet shares decreased despite its exhibition because investors expected more in light of Microsoft’s increasing rivalry.

AI update

Microsoft held an AI conference on Tuesday at its Redmond, Washington, headquarters.

The purpose of the event was to display AI-powered improvements to Microsoft’s Edge browser and Bing search engine.

When it comes to search engine usage, Bing has traditionally lagged behind Google, but the advent of AI improvements might narrow the gap with conversational answers to queries.

Microsoft spent billions in ChatGPT’s OpenAI, a system on top of which the improvements to its products were built.

ChatGPT

The artificial intelligence program causing a stir online is called ChatGPT.

It creates content in response to the provided instructions and became viral following its November release.

Analysts and Google staff have begun to wonder if the leading search engine is lagging behind in AI, though.

The business has also been concentrating on AI for many years.

Google started an internal “code red” after ChatGPT’s dramatic rise to fame in an effort to expedite the development of Bard and other products.

Additionally, Google co-founders Larry Page and Sergey Brin made the decision to take over after spending years away from the day-to-day running of the business.

Microsoft gains

While Microsoft’s most recent AI efforts have increased pressure on Google, many predict it will still be some time before Microsoft realizes material benefits.

An analyst with Jeffries, Brent Thill, stated in a note on Tuesday:

“Search improvements will act as a tailwind to [advertising revenue long term], but it will take time to bring users back to Bing, and they will need a crowbar to pry away advertisers from Google.”

“We view these updates as the tip of the iceberg for MSFT’s AI capabilities, with the largest opportunities in enterprise use cases.”

Evercore analysts claimed that at the Google event, there was news that would have advanced the firm.

Stock drop

The company’s stock price may have fallen as a result of the lack of an increase.

Analysts say they think the event was a hasty and probably early demonstration of the artificial intelligence that Google has been working on for years.

Despite these drawbacks, many think Google’s AI technology is robust enough to compete on its own.

Analysts published a report on Wednesday stating:

“Leveraging its years of AI investment (which drove a near doubling of CapEx in 2018) and unparalleled scale, this should help the company defend its market position in the long run.”

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