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

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CNN
 —

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

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

In an effort to deal with the heightened competitors, Google is claimed to be creating a brand new AI-powered search engine known as Venture “Magi,” in response to the Occasions. The corporate, which reportedly has about 160 folks engaged on the venture, goals to vary the way in which outcomes seem in Google Search and can embrace an AI chat software 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 stated the corporate has been utilizing AI for years to “enhance the standard of our outcomes” and “supply fully new methods to look,” together with with a function rolled out final 12 months that lets customers search by combining photographs and phrases.

“We’ve performed so in a accountable and useful approach that maintains the excessive bar we set for delivering high quality info,” Levin stated. “Not each brainstorm deck or product thought results in a launch, however as we’ve stated 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 twenty years. However the viral success of ChatGPT, which might generate compelling written responses to person 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 software that immediately competes with ChatGPT and guarantees to assist customers define and write essay drafts, plan a pal’s child bathe, and get lunch concepts primarily based on what’s within the fridge.

At an occasion in February, a Google government additionally stated the corporate will carry “the magic of generative AI” immediately 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 thought to make errors and “hallucinate” responses. That’s significantly true in relation to serps, a product that many use to seek out correct and dependable info.

Google was known as out after a demo of Bard offered an inaccurate response to a query a couple of telescope. Shares of Google’s mum or dad 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 a number of errors, together with an obvious failure to distinguish between the sorts 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 careworn 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 stated, which means permitting time for “person 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 in the end have broad impacts on companies, professions and society.

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

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