Alphabet, Google's parent company, saw its stock decline by over 3% in early trading on Monday. This drop followed a report that raised concerns about Google potentially losing its search engine dominance to AI-driven competitors like Microsoft's Bing.
Recently, Google employees were informed that Samsung might switch its default search engine to Bing instead of Google's, causing significant concern within the company. The New York Times, citing internal communications, reported this development, though CNN has not verified the documents.
In response to the competitive pressure, Google is reportedly working on an AI-enhanced search engine project named "Magi." According to the Times, around 160 employees are involved in this initiative, which aims to transform Google Search's results presentation and incorporate an AI chat feature to answer user queries. This project is expected to be introduced to the public next month.
Google spokesperson Lara Levin told CNN that AI has long been used by the company to enhance search quality and introduce new search methods, such as last year's feature that combines image and text searches. Levin emphasized that Google has always prioritized responsible and high-quality information delivery. She added that while not every idea leads to a product launch, Google is eager to unveil new AI-driven search features soon.
Samsung has not yet commented on the situation.
For two decades, Google has led the search engine market. However, the rise of ChatGPT, known for generating engaging written content, has put Google in a defensive position for the first time in years. In March, Google began offering access to Bard, its AI chatbot designed to compete with ChatGPT. Bard assists users with tasks like drafting essays, planning events, and suggesting meals based on available ingredients.
In February, a Google executive announced plans to integrate "the magic of generative AI" into its core search product, aiming to revolutionize information services.
Meanwhile, Microsoft has partnered with OpenAI, the creator of ChatGPT, to incorporate similar technology into Bing and other tools. Other tech giants like Meta, Baidu, and IBM, along with numerous startups, are also racing to develop AI-powered solutions.
However, adopting AI technology comes with risks, as it can produce errors and "hallucinate" responses, which is particularly concerning for search engines that users rely on for accurate information. Google faced criticism when a demo of Bard gave an incorrect answer about a telescope, leading to a 7.7% drop in Alphabet's shares, erasing $100 billion from its market value. Microsoft's Bing AI demo also faced scrutiny for errors, such as confusing vacuum types and fabricating product details.
In a recent interview with 60 Minutes, Sundar Pichai, CEO of Google and Alphabet, highlighted the importance of responsibility in developing and releasing AI tools. He emphasized the need for user feedback and robust safety measures before deploying advanced models. Pichai believes that AI will significantly impact businesses, professions, and society, describing it as a profound technology still in its early stages.