Microsoft Bing's ChatGPT integration fails to dent Google's dominance
Microsoft's Bing search engine integrated OpenAI's ChatGPT last February. However, it is yet to make a dent in Google's search dominance. Even with AI-powered conversational replies, Bing only gained less than 1% point in the global search market, ending 2023 with a 3.4% share. "The entire search category is now going through a sea change," said CEO Satya Nadella at the time of ChatGPT integration. However, his vision is yet to materialize.
Reversing declines and increasing user engagement
Prior to the integration of ChatGPT, Bing users spent 33% less time on the platform. However, after the AI update, monthly active users in the US doubled to 3.1 million in Q2 2023. This figure grew to 4.4 million by the end of the year. Users also spent 84% more time on Bing, as per data provided by SensorTower.
Microsoft adds more AI tools to boost Bing
To keep the ball rolling, Microsoft added OpenAI's image-generating model, DALL-E 3, to Bing in October. While it didn't improve search capabilities, it did boost usage. Microsoft's Corporate Vice President of Search and AI, Jordi Ribas said, "We noticed an increase in usage by 10 times... It really made a difference in the engagement and the users that came to our product."
Google's response and advantages
Microsoft's rival Alphabet Inc is also not wasting time. Back in May 2023, Google launched an experimental search engine called "search generative experience" (SGE), offering conversational responses alongside link lists. Google plans to integrate its large language model (LLM), Gemini, into SGE this year. With over 90% market share and being Apple devices' default search engine, Google still holds a significant edge.
AI in search: A gold rush moment
Both Microsoft and Google believe generative AI will revolutionize online search. Harvard Business School Professor Shane Greenstein said, "We are at the gold rush moment when it comes to AI and search." However, he doubts AI will help Bing catch up to Google's well-established search dominance. This is because the more people use it, "the more the search engine knows and the more Google can use that data to deliver and rank results in a way people find useful."
