Microsoft planned to launch a new-age Bing search engine powered by Artificial Intelligence (AI) technology. The new version of Bing is set to disrupt the internet search market and challenge Google’s dominant position. CEO Satya Nadella predicts that the search’s gross margins will drop forever due to this shift.
The new version of Bing incorporates advances in AI technology that have been sweeping through the tech world since the launch of ChatGPT. Google is now playing catch-up, attempting to make up lost ground by introducing its chatbot and adding AI features to its search engine.
Using AI to supplement or even replace internet searches could lead to higher costs for search companies. Nadella has said he is willing to accept any “demonetization” of the search business, which earned Microsoft $11 billion last year.
The introduction of AI-powered search engines marks a new era in the search industry. It is likely to lead to increased competition, with search engine companies attempting to outdo each other in terms of features and accuracy. However, who will come out on top in this new market has yet to be clarified.
The success of AI-powered search engines could also significantly impact the amount of money Google makes from its search business. This might be a key shift in the industry, as Google’s high margins have been one of the mainstays of its core business for many years.