Alphabet said that its own chatbot, Bard, will be integrated into search within weeks. Investors were unimpressed. Its share price tumbled 8% after the announcement
3.5, has been trained on data from 2021 and thus has no knowledge of anything on the internet after that point. Ask Chat, by contrast, decides how to gather the most relevant information and then uses search tools to find it. The data are then fed back into the model, which uses them to compose a fluent answer. Other firms, including Neeva, are using this method, too.
Giving the model access to up-to-date data has reduced, though not eliminated, the hallucinations rate for Bing’s chat feature. “A lot of the hallucinations were [the model] trying to fill in the blanks on things that had happened since the end of its training data,” explains Kevin Scott, Microsoft chief technology officer. He adds that his firm is using other techniques to lower the rate further.
To complicate matters further, many costly conversational-search queries will generate little or no ad revenue. Google has said that 80% of its search results do not contain lucrative ads at the top of the search results. Many of these ad-light searches are almost certainly “informational” , precisely the sort of query where chatbots are most useful—and precisely the sort that advertisers are least interested in .
Microsoft may be betting that its chatbot-assisted informational search will lure more users, who will then use Bing for the more lucrative queries as well. This would almost certainly mean sacrificing margins, at least until costs can be brought down. It would only be worth it if they can wrest sizeable market share from Google. Microsoft expects that for every percentage point of market share they gain in search, its annual advertising revenue will grow by $2bn.
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