Alphabet Shares Fall 7% Following Google’s A.I. Event

0

Google’s parent company, Alphabet, saw a 7.7% drop in its stock price on Wednesday after an advertisement for its new AI chatbot, Bard, offered an incorrect answer.

Google CEO Sundar Pichai
Google CEO Sundar Pichai speaks during the Google I/O keynote session at Shoreline Amphitheatre in Mountain View, California on May 7, 2019. PHOTO: Josh Edelson | AFP | Getty Images

Google’s parent company, Alphabet, saw a 7.7% drop in its stock price on Wednesday after an advertisement for its new AI chatbot, Bard, offered an incorrect answer. The ad was posted on Twitter and demonstrated Bard’s “experimental conversational AI service powered by LaMDA.”

LaMDA is Google’s Language Model for Dialogue Applications, which allows chatbots to engage in free-flowing conversations through machine learning. The incorrect answer given by Bard in the advertisement has raised concerns about the accuracy and reliability of AI-generated responses.

Google announced plans to roll out AI-powered search results and maps, similar to OpenAI’s chatbot ChatGPT, at an event in Paris on Wednesday. The feature will generate lengthy text responses to complex questions and other features include video and image searches and 3D Google Maps. However, the accuracy and quality of the answers generated by AI remain a concern for the company.

In a research note, Baird analyst Colin Sebastian stated that Microsoft is currently winning the AI public relations race but that the competition is far from over.

Microsoft is a stakeholder in OpenAI and recently announced a multi-billion-dollar investment in the company. The tech giant also plans to power its Bing search engine with the same AI technology used by ChatGPT.

Despite concerns about chatbots disrupting Google’s business model, Sebastian believes that Google’s resources, engineering, cloud capabilities and AI give it a competitive advantage in the long run. He also stated that the company is well-positioned to benefit from the next generation of AI. However, Google’s stock drop on Wednesday highlights the potential risks and challenges posed by AI technology to the company’s business.

Read more on CNBC


About Author

Leave a Reply

Your email address will not be published. Required fields are marked *