Google’s new focus is AI after ChatGPT pressure

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Google The topic of conversation in online forums in recent months has been AI, notably ChatGPT.

Due to its high level of innovation, the well-known chatbot OpenAI has generated a lot of buzz since its inception in late 2022.

Google promises to provide something fresh to the table in order to compete with ChatGPT.

The company is aware of how popular the AI features have become since then.

The news

The Alphabet and Google CEO, Sundar Pichai, declared last week that the business will soon integrate cutting-edge AI technologies in the search engine.

According to reports, Google tested a few of the features last week with staff members.

The trials are a component of a “code red” strategy to take against ChatGPT.

The company’s new search desktop designs feature a chatbot dubbed “Apprentice Bard” that uses a question-and-answer approach.

“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 a discussion utilizing Google’s LaMDA, or Language Model for Dialogue Applications, technology.

Pichai said that in order to receive additional feedback, the business will provide the extensive language model in the upcoming weeks and months.

The ChatGPT threat

The growth of ChatGPT concerned workers in December.

During an all-hands meeting in December, questions regarding the company’s involvement in the race to develop chatbots for consumer enquiries were raised.

They were reassured by Sundar Pichai and Jeff Dean that the firm had comparable functionality, but the cost might be high if something goes wrong because people rely on Google for information.

“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 issue of artificial intelligence reportedly came up repeatedly on Google’s earnings call for the fourth quarter.

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

The corporation is dealing with pressure on Google’s main advertising business as well as another threat from their longtime competitors, Microsoft, at the same time that AI is receiving attention.

Fourth quarter earnings

When Alphabet released its fourth-quarter earnings report on Thursday, it fell short on both the top and bottom lines.

After hours, the stock fell by about 4%, wiping off some of the 7.28% gains made during regular trading hours.

In relation to the 12,000 employee layoff announced in January, Alphabet stated it will incur a charge of between $1.9 billion and $2.3 billion (mostly in the first quarter of 2023) on its books.

In the first quarter, the corporation anticipates suffering expenditures of more than $500 million because of reduced office space.

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They also cautioned that other charges (related to real estate) might be brought in the future.

Alphabet missed Wall Street revenue and profit forecasts for the fourth consecutive quarter in its earnings report on Thursday.

The fragility of the advertising industry was also evident in an 8% drop in YouTube’s ad income and a further 2% drop in Google’s Search and Others revenue.


In addition to the financial issue, Google has been under pressure from the Microsoft-backed ChatGPT.

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

But generative AI solutions like ChatGPT may provide a challenge to Google’s approach to internet search.

The chatbot offers original solutions to difficult searches.

Additionally, Microsoft is thinking of integrating ChatGPT’s features into Bing, its own search engine.

More focus on AI

Despite stepping away from day-to-day operations in 2019, Google co-founders Larry Page and Sergey Brin took a keen interest in the initiatives as the prospect of falling behind in AI growth.

Along with the aforementioned enhancements to search, Google also revealed changes to its DeepMind financial reporting structure.

Since DeepMind is the artificial intelligence utilized, Google will be affected by the restructure rather than the Other Bets sectors, which include long-term investments in venture capital and self-driving technology.

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

When the business reformed as Alphabet in 2015, they subsequently placed it under the Other Bets division.

Two years ago, DeepMind made its first profit.

The reporting shift on the Thursday results call underscores DeepMind’s strategic aim to assist each end of its segments.

“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 said that the business will offer fresh tools and APIs to enable partners, creators, and developers to explore fresh AI capabilities.

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

He clarified that he believes significant language usage is in its infancy, hence cautioned that it would need to develop gently.