Microsoft just launched a version of Bing with ChatGPT-like capabilities.
Powered by OpenAI, Bing can now respond to queries in natural language—just like ChatGPT. And, just like a competing Google product announced around the same time.
Microsoft also said it had plans to incorporate the technology into its Edge browser.
The move was a clear win for Microsoft. At the same time, Google announced Bard, its ChatGPT competitor. But that announcement fell flat among watchers and investors. It even led some to speculate Microsoft could challenge Google for search dominance.
But the truth is a bit more complicated.
In Episode 34 of the Marketing AI Show, Marketing AI Institute founder/CEO Paul Roetzer broke down for me what marketers and business leaders should actually pay attention to here.
1. Microsoft definitely beat Google in a show of AI strength.
“The Microsoft PR team is winning,” says Roetzer.
As a result of better execution, Microsoft came out of the head-to-head battle with Google looking better and more polished.
2. But don’t expect a meaningful shift in the search market.
Google still owns the vast majority of the search market. Despite their poor showing in demoing Bard, they also have some of the best AI technology in the world.
Given how much friction it’s historically taken to get people to switch their search engine, it’s unlikely there’s a meaningful impact here on market share, says Roetzer.
3. And Microsoft may be aiming for something different entirely.
But winning search market share might not even be the point, says Roetzer.
Winning a few search market percentage points is still a big win. And it puts Google on its back foot and forces them to adapt to Microsoft’s moves.
And, while Google scrambles, it’s very possible Microsoft focuses its extremely powerful partnership with OpenAI on other things. Things like getting advanced AI into every Microsoft tool currently used in the enterprise.
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