The AI Search Shakeup Has Officially Begun

It’s been a big week for the future of search engines. 

Microsoft’s new AI-powered Bing search engine has received positive feedback from 71% of testers, according to a blog post released by the company on Thursday. The search engine has also seen an increase in engagement with traditional search results as well as its new chat feature.

Despite its positive reception, Microsoft acknowledged that there are still areas for improvement. The company stated, “We need to learn from the real world while maintaining safety and trust.”

What does this mean for Google? Despite Google’s early move into AI with its ChatGPT competitor, Bard, the company is still facing some bugs in the product.

According to Evelyn Mitchell, an analyst, “Google has deep pockets and has invested in AI, so Bard will be just as innovative as ChatGPT.” However, Mitchell also noted that the responsibility bar is higher for Google, as the company is already under regulatory scrutiny and any issues with Bard could have greater consequences.

Google’s recent moves into AI come after a disappointing fourth quarter of 2022. The company saw a 4% YoY decrease in revenues, a 2% YoY decrease in search and other, a 9% YoY decrease in Google Network, and an 8% YoY decrease in YouTube compared to the fourth quarter of 2021.

Mitchell commented on the drop in search revenues, stating, “This is concerning, as search is typically one of the last areas to see pullbacks during tough times, as it’s easier to justify continued spending with a clear return on investment. The drop in search revenues is an indicator that the ad downturn has gotten worse.”

What does it mean for media buyers?  It might be time to start giving some additional consideration to Bing ads, if you’ve been sleeping on them like the majority of advertisers.  It seems as if BIng will winl some market share in the short run, a warning shot across the bow of Google that their empire might not be as bulletproof as once thought. 

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159 Responses

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