The Information claims that OpenAI is hard at work creating a search solution with generative AI features that would leverage Bing from Microsoft (MSFT) as a partial power source. Microsoft has made billion-dollar investments in OpenAI, and it leverages some of the startup’s technology to power its Copilot AI software solutions for Windows and Microsoft 365.
Microsoft declared in February 2023 that it will challenge Google’s dominance in search by releasing a new Bing search engine that would be enhanced by OpenAI’s GPT technology. However, as of February 2024, Microsoft has not made any progress in reducing Google’s market dominance.
Microsoft said at the time that just one percent of the search advertising industry was generating $2 billion in revenue annually. The AI-powered version of Bing, according to CEO Satya Nadella, represents a new paradigm for search. He called it “a new day in search.”
However, it appears that Microsoft’s Bing initiatives have slowed down a year later. According to StatCounter, the company’s search engine had a market share of just 3.43% in January 2024-a decrease of less than 1% from the same month the previous year. As for Google, it now holds 91.46%, a decrease of less than 1% from the previous year.
The same challenges will arise when flipping the script with an OpenAI solution that operates on Bing. However, it’s possible that ChatGPT’s widespread use may expand the search offering beyond what Bing could.
However, it goes beyond only Google’s widespread use. Additionally, the business is incorporating generative AI into its search offering. AI-generated search results are displayed at the top of the screen, right below the search box, thanks to this function. The box with the generative AI appears below the standard list of search links.
Furthermore, Google isn’t far behind Microsoft in terms of the speed at which it has been releasing generative AI technologies to the market. However, Microsoft has enjoyed a sizable advantage in this regard.
Because of the generative AI tools integrated into its productivity software and a range of cloud computing services, Microsoft maintains its leadership position in the enterprise market.
However, when it comes to searching, Google continues to rule the day. Furthermore, OpenAI still has a ways to go before it can overthrow the industry titan in search, even though the business popularized the generative AI trend.