The news: At an impromptu industry event on Tuesday, Yusuf Mehdi, Microsoft’s Consumer CMO, hailed a new and improved version of Bing powered by AI tech as the “next generation of search and browsing” that will go up against Google.
In response: Google entered the chatbot market on Monday with the unveiling of Bard, a clear response to ChatGPT which will launch in the near future and allow users to search via a conversational interface. Google chief Sundar Pichai wrote in a blog post that Bard is already available to trusted testers.
Why it matters: Google, Baidu, and Microsoft will combine for $161.22 billion in global search ad revenue this year. Google controls over 91% of that triopoly’s share this year and wants to stay well ahead of competitors.
Our take: The hurried announcement and dearth of details on Bard are unmistakable indicators of the “code red” that ChatGPT's introduction last year set off among Googlers who thought the company had been caught flat-footed.
All of the above assumes Microsoft’s experience is, in fact, better. Consumers haven’t preferred Bing since its launch in 2009, but if OpenAI’s positive halo rubs off, Microsoft could gain momentum to begin making inroads into Google’s lead. At that point, we would imagine Google would accelerate its conversational search plans if they’re smart—which they are.
Go further: Want to know what all the fuss is about? Read our new ChatGPT and Generative AI report.
This article originally appeared in Insider Intelligence's Marketing & Advertising Briefing—a daily recap of top stories reshaping the advertising industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.