UJ
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Shares of Alphabet, Google’s parent company, dropped over 3% in morning trading on Monday following a report that raised alarms about potential market share losses to AI-enhanced competitors, such as Microsoft’s Bing.
Recently, Google staff discovered that Samsung was considering switching to Bing as the default search engine on its devices, prompting a state of “panic” within the organization, as reported by the New York Times, which cited internal communications. (UJ has not verified this material.)
To counteract this increased competition, Google is reportedly working on a new AI-driven search engine dubbed Project “Magi,” according to the Times. The initiative, which is said to involve around 160 team members, intends to innovate the presentation of search results and will feature an AI chat tool capable of responding to queries. Public unveiling is anticipated for next month, per the report.
Google spokesperson Lara Levin stated in communication with UJ that the company has integrated AI over the years to enhance “the quality of our results” and “present entirely new ways to search,” including a feature implemented last year that enables users to search by integrating images and text.
“We have pursued this in a constructive manner that upholds the high standards we set for delivering quality information,” Levin mentioned. “Not every idea or concept leads to a rollout, but as we’ve indicated previously, we look forward to introducing new AI-driven features to Search and will provide more information soon.”
Samsung has not responded promptly to the request for comment.
Google’s search engine has maintained market dominance for the past twenty years. However, the rapid popularity of ChatGPT, which can produce engaging written content in response to user inputs, seems to have placed Google on the defensive like never before.
In March, Google began to grant access to Bard, its new AI chatbot that competes directly with ChatGPT and claims to assist users in outlining and drafting essays, planning baby showers, and generating meal ideas based on available ingredients.
At a February event, a Google executive mentioned that the company intends to integrate “the magic of generative AI” into its primary search service and utilize artificial intelligence to lead the evolution of its “information products.”
In contrast, Microsoft has formed partnerships with OpenAI, the developers of ChatGPT, to incorporate similar technology into Bing and other productivity applications. Numerous other tech firms, including Meta, Baidu, and IBM, along with many startups, are racing to create and implement AI-driven solutions.
However, tech companies must tread carefully with this technology, known for producing errors and “hallucinating” information. This is especially critical for search engines, which users rely on for precise and trustworthy data.
Google faced criticism after a demonstration of Bard provided an incorrect answer regarding a telescope, resulting in a 7.7% drop in Alphabet’s shares that day, erasing $100 billion from its market valuation.
Similarly, Microsoft’s Bing AI demonstration was flagged for multiple inaccuracies, including a lack of distinction between vacuum types and fabricated details about certain products.
In a recent 60 Minutes interview that aired on Sunday, Sundar Pichai, CEO of Google and Alphabet, emphasized the importance of companies “being responsible at each stage” while developing and releasing AI technologies.
For Google, he explained, this entails allowing ample time for “user feedback” and ensuring that the company can create more robust safety measures prior to building and launching more advanced models.
He expressed his conviction that these AI tools will significantly influence businesses, professions, and society.
“This is going to transform every product across all companies, which is why I believe it’s a very, very significant technology,” he remarked. “And we are only in the early stages.”
