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AI draws Google’s attention from ChatGPT pressure

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AI Online forums have recently been discussing AI a lot, especially in relation to ChatGPT.

Since its debut in late 2022, the viral chatbot OpenAI has attracted a lot of interest thanks to its high innovation level.

Google promises to offer something unique to compete with ChatGPT.

In addition, Google is aware of the increase in demand for AI features since its launch.

The news

Alphabet and Google CEO Sundar Pichai said last week that the firm will soon embed cutting-edge AI technology in the Google search engine.

According to reports, Google tested some of the features on staff last week.

The experiments are a “code red” approach to be used against ChatGPT.

The “Apprentice Bard” chatbot is one of Google’s new search desktop interfaces, and it uses a question-and-answer method.

“Very soon, people will be able to interact directly with our newest, most powerful language model as a companion to Search, in experimental and innovative ways,” said Pichai.

He was referring to an interaction that was done using Google’s LaMDA (Language Model for Dialogue Applications) tool.

According to Pichai, the business will make the whole language model available in the next weeks and months to collect further input.

The ChatGPT threat

Employees at Google sounded the alarm over ChatGPT’s growth in December.

During an all-hands meeting in December, concerns regarding Google’s role in the race to develop chatbots for user queries were raised.

They were reassured by Sundar Pichai and Jeff Dean that the firm had equal aptitude, but they were also warned that because so many people relied on Google for information, the cost may be insurmountable if something went wrong.

“This really strikes a need that people seem to have but it’s also important to realize these models have certain types of issues,” said Dean.

The discussion of artificial intelligence reportedly took up a lot of time during Google’s fourth-quarter earnings call.

“AI is the most profound technology we are working on today,” said Pichai.

At the same time that AI is getting attention, the company is grappling with pressure on its core advertising revenue as well as another challenge from its old rival, Microsoft.

Fourth quarter earnings

On both the top and bottom lines, Alphabet’s fourth-quarter earnings report, which was released on Thursday, was underwhelming.

When the price fell by over 4% after trading hours, some of the 7.28% gains made during regular trading hours were forfeited.

In regard to the 12,000 employee layoffs that were announced in January, Alphabet indicated that it will incur a loss of between $1.9 billion and $2.3 billion (mostly in the first quarter of 2023) on its books.

Due to the reduced office space, the firm anticipates spending more than $500 million in the first quarter.

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Additionally, they warned that other charges (connected to real estate) might be issued later.

Alphabet reported that it has missed Wall Street revenue and profit projections for the fourth consecutive quarter in its results presentation on Thursday.

The 8% fall in YouTube’s ad income and a subsequent 2% decline in Google’s Search and Other revenue are more signals of the advertising industry’s frailty.


Along with the budget issue, ChatGPT, which is supported by Microsoft, has been applying pressure on Google.

Web search is the company’s main business, and it has long positioned itself as an AI pioneer.

However, generative AI applications like ChatGPT may endanger Google’s approach of doing internet searches.

The chatbot offers original solutions to difficult searches.

Additionally, Microsoft is thinking about integrating ChatGPT’s services into Bing, its search engine.

More focus on AI

Due to the prospect of falling behind in the development of AI, Google co-founders Larry Page and Sergey Brin took an active role in the projects after stepping away from day-to-day operations in 2019.

Along with the stated advances to search, Google also revealed changes to the DeepMind financial reporting structure.

Because DeepMind is the artificial intelligence employed, Google will be influenced by the restructure as opposed to the Other Bets sectors, which include long-term investments in venture capital and self-driving innovation.

For more than $500 million, Google purchased the London-based business in 2014.

When the business was reformed as Alphabet in 2015, they subsequently incorporated it under the Other Bets segment.

Two years ago, DeepMind recorded its first profit.

DeepMind’s strategy to support both ends of its segments is highlighted by the change in reporting during the earnings call on Thursday.

“To be very clear, we consolidate Other Bets into Google only when that bet supports products and services within Google or Alphabet broadly,” said Porat.

“That was very effective,” she added, referring to Chronicle, a cybersecurity company that rolled into Google’s cloud unit in 2019.

Sundar Pichai claims that the business would bid to develop tools and APIs to let collaborators, creators, and developers explore cutting-edge AI capabilities.

“These models are particularly amazing for composing, constructing, and summarizing,” said Pichai.

He stated quite clearly that he believed the use of language was still in its development and advised that it would need to grow gradually.

Image source: Search Engine Journal