Microsoft's Bing Sees Modest Growth with ChatGPT Integration, But Google Still Leads the Search Market
Portfolio Pulse from Anusuya Lahiri
Microsoft Corp's integration of ChatGPT into Bing has led to modest growth in its search market share, now at 3.4%. Despite doubling U.S. monthly active users and a tenfold increase in usage with DALL-E 3 integration, Bing's market position remains far behind Google's over 90% share. Microsoft plans to introduce ads and enhance features to drive more traffic and revenue, while Google develops its own AI tools and plans to integrate Gemini. MSFT shares saw a slight increase of 0.85% to $392.78.
January 18, 2024 | 2:44 pm
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Microsoft's Bing has seen modest growth with ChatGPT integration, doubling U.S. monthly active users and significantly increasing usage with DALL-E 3. The company is also planning to introduce ads to leverage the growing popularity of Bing.
The integration of AI technologies like ChatGPT and DALL-E 3 into Bing and the subsequent user growth, along with plans to monetize through ads, are positive indicators for Microsoft's stock in the short term. However, the dominance of Google in the search market could limit the potential impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
NEUTRAL IMPACT
Google retains over 90% of the search market share and is the default search engine on Apple devices, despite Microsoft's efforts to enhance Bing with AI. Google is also developing its own AI tools and plans to integrate Gemini.
Google's dominant market position is unlikely to be significantly affected by Bing's AI enhancements in the short term. The development of its own AI tools and the integration of Gemini suggest that Google is actively maintaining its competitive edge.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 70
NEUTRAL IMPACT
Alphabet Inc's Google continues to dominate the search market with over 90% share. Google's development of AI tools and the upcoming integration of Gemini indicate its commitment to maintaining its lead in the market.
Alphabet's Google is not expected to see a short-term impact from Microsoft's Bing updates, as it continues to hold a dominant market share and is also advancing its own AI capabilities with Gemini.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 70