Google offered a glimpse of its new artificial intelligence chatbot search tool on Wednesday at a presentation that sought to underscore its prowess in both search engine and AI tech, a day after archrival Microsoft unveiled its own search chatbot aimed at eroding Google’s dominance.
But a highly visible mistake Google’s bot, named “Bard,” made in a Monday blog post the company put out announcing the product, and the fact that Google hasn’t let outsiders test its tool yet, potentially contributed to concerns from the company’s investors, who sold off shares, leading to an 8% drop in the company’s value Wednesday morning.
The dueling announcements, hyperfocus on whether Google is dipping behind Microsoft and twitchy Wall Street reaction show how the battle over AI has become the central obsession of the tech industry.
“The AI arms race between Microsoft and Google (and the rest of Big Tech) has begun,” said Dan Ives, an analyst with Wedbush Securities, in a Wednesday note.
The chatbot search tools announced by the companies this week are different from regular search engines in that they create longer, contextualized answers in response to queries, cutting out the need for people to click through to a publisher’s website. On Tuesday, Microsoft held a major event at its Redmond, Washington, headquarters, where Chief Executive Officer Satya Nadella touted its chatbot search feature, based on tech developed by smaller AI company OpenAI. Google, meanwhile, appeared to attempt...
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