The Rise of Generative AI Chatbots

The use of generative artificial intelligence (AI) chatbots has been on the rise, as revealed in the recent BofA Global Research survey. The survey targeted more than 1,100 US internet users aged between 18 and 55, who have widely used Open AI’s ChatGPT, Alphabet’s Bard, and Microsoft’s Bing Chat for their daily conversations.

According to the survey, 59% of respondents use ChatGPT, 51% use Bing, and 34% use Bard. Among them, 30% of users access Bing and Bard daily while ChatGPT is at 23%. Besides, 40% of internet users communicate with these chatbots several times a week.

Interestingly, when asked to choose only one of the three chatbots, 49% picked ChatGPT, followed by Bing at 26% and Bard at 21%. Furthermore, the survey highlights that two-thirds of respondents have either downloaded ChatGPT or plan to do so on their mobile phones.

These findings could potentially disrupt the internet search business, online advertising, and the means through which people retrieve information. Despite ChatGPT’s lack of current information about news, sports, weather, and other topics following the completion of its training model in mid-2021, consumers prefer using it over its competitors.

As more people continue to engage in conversations with chatbots, the trend towards using AI chatbots is here to stay.

Google’s Future Outlook Amidst AI Features

According to Post, Google users may drop by 19% due to the higher usage of Microsoft’s Bing and ChatGPT. Nevertheless, 45% of respondents have shown that they will use Google more because of Alphabet’s generative AI features added to the search engine.

As for monetization, roughly 80% of respondents stated that they would still use Bard, Bing, or ChatGPT as much even if ads were added. Half of the respondents indicated that they would pay for a premium ChatGPT subscription, while 43% would pay for Bard and 36% Bing.

Despite the concern over Google’s position in internet search, Post remains positive about the company’s future outlook due to the expected strong benefits from AI tools for advertisers in 2023. He believes that AI will improve ad relevance in search results.

However, UBS analyst Lloyd Walmsley’s rating on Alphabet stock has been reduced to ‘Neutral’ from ‘Buy’, citing concerns that AI-generated answers to user search queries could lessen the need to click through to websites, resulting in slower growth in ad revenue.

As of Monday afternoon, Alphabet shares are underperforming, with a drop of 2.8%, closing at $118.97.

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