AI Bots Like ChatGPT Pose Threats to Google's Search Engine Business

Tech companies and researchers are buzzing over the recent release of ChatGPT, a new artificial intelligence chatbot developed by OpenAI.

ChatGPT is a unique chatbot that utilizes a cutting-edge AI language model to generate human-like responses to user input. This technology allows ChatGPT to hold natural conversations with users, making it a valuable tool for businesses and researchers.

The New York Times reports that even though ChatGPT still has a lot of potential for development, its launch prompted Google's management to issue a "code red." This move was like sounding the fire alarm for Google. The coming of a significant technical development that might completely upend the business is a time that the most prominent Silicon Valley companies dread, and some fear that the search engine may be approaching it.

In the Code

Google, among other companies and research labs, has played a role in helping to build ChatGPT and has its chatbot, LaMDA, or Language Model for Dialogue Applications running at the program's core, the NY Times reports.

However, experts believe that Google may need help to compete with smaller companies developing chatbots due to the potential for the technology to damage Google's business model, which relies heavily on digital ad revenue.

LaMDA received significant attention in the summer when a Google engineer claimed it was sentient, although this was later proven false. Despite the impressive advancements in chatbot technology, Google may be hesitant to deploy it as a replacement for its online search, as chatbots need to be better suited for delivering digital ads, which made up over 80% of the company's revenue last year.

Users are less incentivized to click on advertising links if a chatbot can provide concise and accurate responses to user queries.

According to Statista, Google's revenue in 2021 was $256.7 billion. Google's revenue is primarily comprised of advertising revenue, which was $209.49 billion in the said year. Other revenue streams include product licensing and, more recently, digital content and mobile apps distributed through the Google Play Store, a digital content distribution platform.

As smaller companies progress in the field of chatbot technology, it remains to be seen how Google will adapt and compete in this rapidly evolving landscape.

Not Enough Clicks

According to a memo and audio recording from The New York Times, Google CEO Sundar Pichai has been involved in meetings to define the company's AI strategy in response to the threat posed by ChatGPT, a highly advanced chatbot developed by OpenAI.

As chatbot technology advances, industry experts believe that Google must decide whether to make a full-fledged chatbot the face of its flagship search engine.

However, Google has been hesitant to share its chatbot technology broadly due to the potential to generate false, toxic, and biased information, similar to ChatGPT and other systems.

Currently, Google's chatbot, LaMDA, is available to only a limited number of people through an experimental app called AI Test Kitchen. According to a memo viewed by The New York Times, Google sees the deployment of its advanced AI technology as a struggle to balance the potential benefits with the potential risks to users and society.

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