Google could potentially lose up to $30 billion annually in the battle to lead the generative artificial intelligence chatbot market. Alphabet, Google’s parent company, is already working on a new web search engine called Project Magi, as reported by The New York Times.
The interest in ChatGPT has been rapidly increasing since last November, when Microsoft included it in its own search engine Bing. Currently, all major technology companies, including social media platforms, have their own in-development AI chatbots.
Despite the impact on Google Ads, the company’s advertising model for its search engine, the tech giant has joined the race for generative AI. It has announced BARD, its own ChatGPT, which is still in the experimental phase for a select few users. Integration into search results like Bing has not yet been implemented, but CEO Sundar Pichai has hinted at the possibility in the future.
The integration of AI chatbots into search results is not new for Google. Direct answers to queries have been called «featured snippets» since 2016. These snippets, highlighted in search results, push down the other blue links and have already impacted the audiences of websites throughout the internet.
Whoever appears in the featured snippet, for example, can capture more than 30% of clicks, although some SEO experts argue that they are created for everything that Google can answer itself, leading to cannibalization.
In other words, an approximate calculation of how much the inclusion of BARD in the top search results will reduce media audiences when it captures more user attention can be made.
This would be another step in Google’s evolution from a simple page indexer of links to one that recommends URLs, videos, photos, football results, weather forecasts, or direct zero-click answers.
In recent years, Google has become a selector of news and wants to be a competitor to TikTok and Instagram reels. Now, AI chatbots are the next threat to its advertising business. More than half of Google’s revenue comes from its search engine, Google Search.
Many estimate this to be just hype, but it is another technological disruption already underway, like the mobile phone or the popularization of the internet and social media.
Essentially, what could happen to Google’s search engine is that it may cease to be the standard for accessing information on the internet (and instead redirect it to the media, for example).
The critical risks also come from the advertising side. Brands could find that the blue links (Google Ads) for which they pay to position themselves in the top sponsored positions no longer capture user attention, as users become more focused on BARD.
If this were the case, advertisers would have two options, one of which would be fatal for Google: finding other platforms with better returns (such as Facebook). The second option is not much better.
Moreover, Google is facing a reputation problem. BARD’s «hallucinations» can create not only misinformation but also errors in its recommendations to users, such as comparative solutions between commercial brands.
Until now, Google Ads or endorsers – creators of product reviews – were the ones who ranked these recommendations based on their own merits through SEO and Google’s guidelines.
BARD may distort these web positioning rules in Google’s search engine and in sponsored link endorsements.
Google’s fear of losing its position in the chatbot market is not unfounded, as other tech giants like Microsoft and Facebook are also working on their own AI chatbots. In fact, Facebook’s M was one of the earliest AI chatbots, but it was shut down in 2018 due to its inability to scale. However, the social media giant is reportedly working on a new AI assistant, and its Messenger platform already offers some basic chatbot functionality.
Despite the stiff competition, Google has the advantage of being the most dominant search engine and its extensive data resources. Its natural language processing capabilities are also among the best in the industry, which gives it an edge over other companies. However, the challenge for Google will be to strike a balance between delivering relevant search results and providing chatbot functionality that users find useful and engaging.
In conclusion, the rise of AI chatbots presents a significant challenge to Google’s core business model, but it also offers new opportunities for innovation and growth. The search giant’s success in this arena will depend on how well it can integrate chatbot functionality into its existing search platform, while also providing a seamless and engaging user experience. Only time will tell whether Google will be able to maintain its dominant position in the search market and emerge as a leader in the chatbot space.
SOURCE: David – ReddePeriodistas