Google Stock Falls Nearly 8% Due to Inaccurate Bard Post - AI Race Gets Hotter

Google's parent company, Alphabet (GOOGL), slumped Wednesday after publishing an incorrect advertisement for its Bard chatbot, which relies on artificial intelligence. A fluke in Google's advertising caused its stock to fall nearly 8%.

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An experimental chatbot powered by LaMDA was demonstrated in a video posted on Twitter by Google. According to Google, LaMDA provides chatbots with "free-flowing" communication by applying machine learning.

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"What discoveries can I tell my 9-year-old about from the James Webb Space Telescope?" is the advertisement's question.

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There are two correct answers provided by Bard within a short period of time. In the end, it provided an inaccurate response. A planet outside our solar system was photographed for the first time by the telescope, according to Bard.

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 The Very Large Telescope of the European Southern Observatory took the first pictures of these "exoplanets" according to NASA records.

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Trade Algo reported that Google touted the AI-powered search and mapping technology at a Paris event on Wednesday. ChatGPT-like lengthy text responses will be generated using the new feature. As soon as Google is confident that its answers will be accurate, it will launch the feature.

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Trade Algo reports that Google Maps will also offer video and image searches and create virtual tours of buildings using two-dimensional images, in addition to three-dimensional Google Maps.

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Competition for Google Chatbots

Several analysts have stated that Microsoft is leading the early AI PR sprint in a research note released Wednesday by Baird. He warned that the marathon had only just begun.

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The chatbot ChatGPT that has gone viral in recent weeks is operated by Microsoft's AI competitor OpenAI. In addition, Microsoft announced on Jan. 23 that it would invest at least $1 billion in OpenAI. A specific amount was not revealed at the time by the tech giant.

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As part of its effort to catch up to Google in the search engine market, Bing launched a new version of its search engine this week. In addition to ChatGPT, Microsoft plans to power Bing with the same artificial intelligence technology.

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Google has a competitive advantage over the long term due to its scale, engineering, and cloud resources. A new generation of artificial intelligence could benefit the company in the future, Sebastian wrote. With a rating of overweight on Google stock, he maintained his price target of $120.

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According to Trade Algo, Google has been worried about how chatbots could disrupt its business model. Unnamed Google executives have expressed concern that text-heavy query results could cut into the company's ad revenue and e-commerce revenue, which account for 77% of sales.

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Performance of AI players in Google Stock

A 7.7% decline to 99.37 was reported for Google stock on Monday. At the same time, Microsoft (MSFT) lost a fraction to 266.73, erasing modest gains made earlier in the day.

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Baidu (BIDU) stocks plunged nearly 5% to 152.34 Wednesday after surging to 11-month highs on Tuesday following its announcement of a chatbot powered by artificial intelligence.

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It was announced Wednesday that Chinese e-commerce giant Alibaba (BABA) is developing its own chatbot powered by artificial intelligence. A slight drop took place in the BABA stock price.