Bing, Microsoft’s search engine, has experienced a surge in popularity since adopting OpenAI’s ChatGPT technology, which has put it in a stronger competitive position against Google, the search market leader. According to a Reuters report, Bing’s traffic has increased by 15.8% since the launch of the AI-powered version on February 7, while Google’s search engine has seen a decrease of nearly 1% in the same period. These numbers indicate the gains that Microsoft has made by entering the competitive market for search based on generative AI technology early.
This represents a rare opportunity for Microsoft to make gains in the search market, which Google has dominated for years with a share of more than 80%, and Bing’s ability to attract between 1 and 2% of users will be financially beneficial to Microsoft. Gil Loria, an analyst at Davidson & Co, predicted that Bing’s share in the search market would grow in the coming months, especially if Google was late in integrating generative artificial intelligence into its products.
Although Bing AI has been available to most users worldwide since February, Google only began issuing its chatbot Bard this week, and only a limited number of users had the opportunity to use it. Analysts believe that Bing’s share will grow even further, especially if Google continues to lag behind in integrating generative AI technology into its products.
Data.ai, an app research firm, reported that Bing app downloads worldwide rose eightfold following the AI boost, while the Google search smartphone app saw a 2% drop in downloads over the same time frame. However, some analysts believe that Google can recover from these initial challenges and maintain its leading position.
Youngji Jeong, an analyst at Mirae Asset Securities in South Korea, said in a statement to Reuters that Google’s algorithm for ranking search results has an advantage over other algorithms, which gives it an edge over competitors. Although Bing has made significant gains in the search market, it remains to be seen whether it can sustain these gains and challenge Google’s leadership in the long term.
