ChatGpt is ushering in a new digital revolution that is taking the world by storm. How can the world’s largest digital ecosystems be far behind? On February 6, 2023, the biggest search engine Google’s parent company Alphabet made a presentation of its brand-new artificial intelligence chatbot, Bard.
Bard is an experimental conversational AI service, powered by LaMDA – Language Model for Dialogue Applications (or LaMDA for short). ChatGPT, on the other hand, is a chatbot developed by OpenAI, and is an artificial intelligence (AI) application that was released in November 2022.
One day after Microsoft Corp. hosted its own event to showcase new AI technology in its rival search engine, Bing, Alphabet Inc.’s shares fell 7.68% following the formal demonstration of Google’s new AI chatbot, Bard. Alphabet stock’s price is down by 28.31% over the last 12 months but is up by 12.63% YTD.
Investors and analysts seem to be disappointed with the results that Bard showed on the day it was demonstrated by the company. Bard is now only accessible to a small group of trustworthy testers, and OpenAI’s ChatGPT has also been discovered to provide incorrect or out-of-date responses. Further, investors are very aware of any threat to Google’s search business, which is still its main source of revenue.
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When ChatGPT was released last year, Google issued a “code red” in reaction and made the AI engineers scramble for a solution. Market observers think the corporation may have felt under pressure to demonstrate the technology before it was ready, as seen by Bard’s subpar performance on the public stage.
Some equity research analysts consider this to be a long drawn competition that could eventually shift in Google’s favor. Google has competitive advantages in scale, engineering, cloud resources and AI capabilities than others in the market. Moving ahead, investors may expect some enhanced volatility in global artificial intelligence-related stocks.
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