"MS Applies Chat GTP to Bing Search Engine in Q1"
Challenging Google, Which Controls 85% of the Search Market
Experts Say "Google Monopoly Is Over" VS "Different Specialized Areas"
[Asia Economy Reporter Yuri Choi] The search market is heating up as Microsoft (MS) announced it will apply 'Chat GPT' to its search engine Bing. Some predict that this AI, as intelligent as a human, will break Google's monopoly. It is said that it will shake the dominance of Google, which has held the world's number one search service position for over 20 years. On the other hand, there are analyses that it will not replace existing search engines due to accuracy limitations.
On the 5th, US IT media The Information and other foreign media reported that MS is developing Bing integrated with Chat GPT. The new version of Bing is planned to be launched as early as the first quarter. Chat GPT is a conversational AI developed by OpenAI, the world's largest AI research institute. It combines the performance of GPT-3, considered the smartest AI to date, with natural conversational abilities. When a question is asked, it provides real-time answers.
MS's use of Chat GPT was a foreseen step. After investing $1 billion (about 1.2 trillion KRW) in OpenAI in 2019, the collaboration has continued. MS provided the computing resources necessary for OpenAI to develop the GPT model and obtained exclusive rights to use GPT-3. They combined this with cloud services to offer it to corporate clients. Recently, MS also announced plans to apply OpenAI's 'DALL·E 2' to Bing. DALL·E 2 is an image-generating AI that converts text into pictures.
With the launch of a Chat GPT search engine, a full-scale battle with Google will ensue. It challenges Google's dominance, which has a market share ten times higher in the search market. Globally, Google's search market share is 84.7%, close to a monopoly. Next are Bing (8.6%), Yahoo (2.5%), Yandex (1.4%), and Baidu (0.6%).
Some believe Chat GPT will surpass Google. This is because it understands user intent and shows only the most accurate answers. This means higher search efficiency. This differs from Google, which shows multiple options that might answer the question. Remembering previous conversations is also a strength of Chat GPT. Because of this, it can provide search results closer to the user's intent.
For example, when searching for 'Seoul tourist spots recommended for foreigners,' Google shows documents related to the topic. Users must select information close to their search intent from these. In contrast, Chat GPT directly answers, 'There are Changdeokgung Palace, Seoul Forest, etc.' Then, if asked, 'Among the recommended tourist spots, which is closest to Seoul Station?' it finds the answer. This differs from Google, which lists new information regardless of previous search results.
A developer formerly at Google said, "Chat GPT drastically reduces the time needed to find necessary information," and added, "It could shake the search market just as Google once displaced Yahoo."
On the other hand, there are analyses that it is insufficient to change the market landscape. This is due to clear limitations in accuracy. If Chat GPT has errors or biased information in its training data, it can provide incorrect answers. Due to the nature of AI, it takes time to learn, so it cannot immediately reflect the latest information. For example, it might say Elon Musk developed the Windows system or that the President of South Korea is former President Moon Jae-in. There is also the risk of fabricating false information plausibly, which could be misused.
Instead, experts believe Chat GPT will expand its share in specialized fields where it has strengths. Professor Myungjoo Kim of the Department of Information Security at Seoul Women's University said, "Just as Yandex specializes in image search, there are different strengths," and predicted, "If Google is used for general searches, Chat GPT could be utilized in more specialized areas such as coding and academic paper summarization."
Google is in a dilemma. It has issued a 'Code Red' warning, signaling a serious crisis regarding Chat GPT. Sundar Pichai, CEO of Google's parent company Alphabet, instructed in a strategy meeting to address the threat Chat GPT poses to the search engine business.
Professor Seongmin Jeon of Gachon University's Business Administration Department said, "Google also has AI technology, but it must be deeply concerned as it could shake its existing search-advertising-based revenue model," and added, "The key will be how boldly MS, which earns money from cloud and software (SW), invests in search."
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