Microsoft Bing is hot on the heels of Google, opening up a waitlist for Bing + GPT4.
For now, we can have a glimpse on how the interface would look like.
There is the usual search bar but instead of typing the keywords, we can type in a question like how we would ask another person. It is a more conversational and an intuitive way to find answers.
After you typed the question, Bing would display the GPT answers first, with links to the sources that it got the answers from.
Subsequently Bing would show the usual search results.
But here’s the thing, if GPT answers are good enough, few would scroll down to click on the links.
This would change the entire way we do internet search today and hence it is no surprise that Google is facing an existential threat.
Think about it, currently Google will display the links straightaway, although sometimes we get a Featured Snippet, but the links are the main show and for us to navigate and get our answers.
Google makes money by selling ads that look very similar to a non-sponsored search result. It is deliberate so we don’t gloss over the ads.
In FY22, Alphabet generated 57% of the revenue from Google Search.
It is of Alphabet’s interest not to change something that is working and which is bringing in the truckload of dollars.
There is a risk of losing ad dollars if Google positions AI answers first instead of sponsored ads.
And if Google doesn’t change, Bing might be able to capture part of the market share.
As Microsoft CEO, Satya Nadella said, “all I need is a few more users, and someone else (referring to Google) that I’m competing [with] has to keep all of their users and all of their gross margin.”
This is a lose-lose position and Google has decided to make the change by introducing the conversational Bard (soon.)
Change is coming for everyone else too – we got to get good at using AI to find answers instead of the search method we are used to.
As for Alphabet, it is too early to tell how popular Bing would be and how Bard would work.
Most importantly, how would Google Search revenue be impacted after this search transformation.