AI + Search Engine and Microsoft Strategy?

It is in Feb 2023 and as we speak, 谷歌 control around 95% of the web search engine market and 微软 #bing is at a distance of 3%. This market position has been so for decades and there was absolutely no way anyone can think of even challenging #Google .

But the year 2023 will probably be known as the AI evolution year, as we are seeing this sophisticated technology going mainstream. #microsoft has been betting very high with its investment of $10B in OpenAI and further integrating #chatgptai with its Bing #searchengines .

Google, on the other hand, was kind of caught off guard and looks like scrambling to appease its inventor and customer that they too have revolutionary Generative AI capabilities that are built #largelanguagemodels known as #bardai . Here the point to note is that #google has been known to be working on AI technology for the year. But seems the First Mover Fear (FMF) or Inventor’s Delima seems to have been the reason for their apprehensive approach. And now the Fear of Missing Out (#fomo ) is pushing them to respond to the changed market dynamics, #customer expectations, and #businesstransformation .

Microsoft integrated OpenAI’s ChatGPT with the Bing search engine and per the initial review comments, there is a lot of positive to say about it than negative. It seems that Microsoft has taken the lead and has an upper hand.

During the interview with The Verge, Satya Nadella even said that .....

“At the end of the day, they’re the 800-pound gorilla in this. That is what they are. And I hope that, with our innovation, they will definitely want to come out and show that they can dance. And I want people to know that we made them dance, and I think that’ll be a great day”.

#google is dominating the search engine with 95% of the market share and also earns around 60% of its revenue from ads business. From this market situation, there is nothing for #microsoft to lose (apart from a $10B investment) but everything to gain. Even if they can capture 5-10% of the web search engine market share, that could send a very wrong signal toward Google's revenue and dominance.

So, the question now “How can Microsoft challenge the Google Search Engine?”

The only way for Microsoft to achieve this is by integrating the web search in every product like #office365 , #dynamics365 , #visualstudio , #bing , #edge , #msteams , #viva , etc. Additionally, it could also engage with other market products like 甲骨文 , Salesforce , ServiceNow , Workday , Adobe , 苹果 #iWork , etc. to integrate Bing AI. Integrating a web search that is powered by Bing AI, into the various products will provide a better interface for users to search for web content without a browser. On the other hand, it will restrict users from visiting Google.com for any search.

For example, you are working on an Excel and want to write a formula or a macro but facing an issue. The Bing AI + Excel integration will help the user to find the contextual solution within the Excel application itself, instead of opening a browser and searching for information. This is a simple example and if implemented correctly in all the products can significantly reduce the use of Google.com.

Just imagine, if the users can find relevant and contextual information right in the place where it matters it going to be a better interface.

This is going to be an interesting battle between the technology giants and the year 2023 will be known as the year of AI going mainstream. This technology does have the potential to change the dynamics of computerization and digitalization similar to the revolution of mobile, social, analytics, and cloud around 2008.

Remember with a 3% market share, Microsoft has everything to gain and Google has everything to lose from here. Even a small change in this market share could significantly impact Google's revenue.

What do you think about this tussle between Microsoft and Google?