Yesterday, Alphabet (GOOGL.US) rolled out an update for its free generative AI tool called Bard, which actually is a direct competitor to ChatGPT. Bard offers several advantages over ChatGPT, including:
- completely free to use
- real-time internet connectivity
- availability in 180 countries as of yesterday
However, Bard is still unavailable within the European Union. On a support page, Google provides a comprehensive list of the 180 countries where Bard is currently accessible, encompassing various nations worldwide, but noticeably excluding any EU member states. Although Google has not officially stated the reason behind, it is reasonable to assume that it is related to the General Data Protection Regulation (GDPR). Just recently, Italy banned ChatGPT due to similar concerns about its compliance with regulatory requirements.
Bard in details:
- ChatGPT knowledge ends in 2021 and does not have a real time connection yet (but there are updates incoming), whereas Bard already offers this feature and is connected to the internet in real time
- supports voice input, allowing users to communicate verbally instead of relying solely on text-based interaction
- enables the direct export of generated text, including the option to export it as an email.
- answer questions about the latest events and about popular stock market companies with detailed reasoning
- multiple response drafts, providing users with three options to choose from
- capability to write and explain code in over 20 programming languages.
- Suggestion about Google search results to assist users in further research and quickly verify sources, a feature not present in ChatGPT
Given Google's extensive product offering, including Google Maps and Gmail, Bard seamlessly integrates with these services. Users can utilize Bard to plan trips and discover the best places to visit based on up-to-date information. Furthermore, Bard allows for exporting responses directly to Gmail drafts.
Furthermore, Google introduced a new feature called Immersive View. By leveraging AI technology, Immersive View creates a highly detailed representation of a location using billions of stitched panoramic images. This allows users to experience a place virtually before physically visiting it, enhancing the exploration of the world through their devices - this function is yet to be available in Google Maps app.
Examples of big companies that choose generative AI on Google Cloud:
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Canva: Utilizes Google Cloud's generative AI for language translation to support non-English speaking users
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Deutsche Bank: Tests Google's generative AI and large language models to provide insights to financial analysts, improving operational efficiency and data security
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Uber: Develops generative AI for customer-service chatbots and agent assist capabilities to enhance customer satisfaction and cost efficiency
Generative AI sector:
In 2022, the global generative AI in business market was estimated to be worth USD 1.2 billion. It is projected to grow at a compound annual growth rate of 33.5% during the forecast period of 2023-2032, with an expected value of USD 21.6 billion by 2032.
Although Google has not released growth projections for its new product, investors can gauge the potential based on ChatGPT's projections. ChatGPT achieved a remarkable feat by reaching 100 million active users in just two months. OpenAI forecasts that ChatGPT will generate $200 million this year and is expected to reach $1 billion in 2024.
The AI race is still unfolding as big tech companies enter the sector. OpenAI's CEO, Sam Altman, has privately expressed aspirations to raise up to $100 billion in the coming years. This funding would be allocated to advancing generative AI and enabling it to improve its own capabilities.
Alphabet stocks (GOOGL.US) have resumed an upward trend following several positive announcements, including the recent Bard update and strong Q1 earnings. In February, there was a period of panic selling by investors when Google initially presented its generative AI model, Bard, at a conference. The event was perceived as a failure as the AI didn't perform as expected and provided incorrect answers. However, with a significant update since then, the sentiment towards the company is now shifting back to positive.
