Google plans to integrate conversational AI into search amid rising competition.
Sundar Pichai, the CEO of Google, has announced intentions to include conversational artificial intelligence (AI) in the company’s primary search engine.
This announcement, which was revealed during an interview with The Wall Street Journal, is a response to other commercial concerns as well as the growing competition from AI chatbots like ChatGPT.
The Financial Stakes of AI Integration
After the public release of ChatGPT by OpenAI, a firm financed by Microsoft, the competition to incorporate AI into consumer products has increased. Google’s primary business is now under threat from Microsoft, which has already incorporated ChatGPT-like technologies into its search engine, Bing.
As a result of the language model’s ability to hold lengthy discussions with Bing users, use has soared. That is a challenge for Google, whose main revenue stream is from search ads, which totaled $162 billion in 2017.
Microsoft anticipates an increase in revenue of $2 billion for each percentage point in the search market that is gained. Due to uncertainties regarding the accuracy of AI-powered chatbots, Google has been hesitant to use them. Pichai stated that Google is still looking for the perfect market and plans to continue improving its standalone Bard chatbot with new AI models.
Balancing AI Development with Cost Management
To process computations for human-like dialogues, developing AI technology requires enormous processing power. Pichai admitted that Google must strike a balance between managing expenses and allocating resources for AI work. The company’s two main AI divisions, Google Brain and DeepMind, will work more closely together to develop massive algorithms to control expenses.
Like Microsoft, Google wants to use its investment in AI models to gain a larger customer base. Google recently allowed developers on its cloud computing service access to its Pathways Language Model. According to Pichai, smaller AI models will become more beneficial, enabling businesses to create their own or enabling people to run algorithms on mobile devices.