Alphabet loses $100 Billion as AI Chatbot Fails to give correct answer in Google Ad Demo
Alphabet shares drop
Alphabet shares fell by nearly 9% as new AI Chatbot messed up of posting a wrong answer during Google Ad demo . The new artificial intelligence chatbot, Bard, sparked concerns that the tech giant has lost ground as it failed to give correct answer.
Google has been experiencing sleepless nights after OpenAI, a Microsoft startup introduced software in November that has wowed consumers and become a fixation in Silicon Valley circles for its surprisingly accurate and well-written answers to simple prompts.
Notably, Microsoft is backing with around $10 billion, after the launch of ChatGPT.
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Google’s live-streamed presentation on Wednesday morning did not include details about how and when it would integrate Bard into its core search function.
Bard’s error was discovered just before the presentation by Google, based in Mountain View, California, when it give a wrong answer to a person who asked “What new discoveries from the James Webb Space Telescope (JWST) can I tell my 9-year-old about?”
Suggesting many answers, one of them caught fire among the people. As Bard suggested the JWST took the very first pictures of a planet outside the Earth’s solar system, which is inaccurate.
The first pictures of planets were taken by the European Southern Observatory’s Very Large Telescope (VLT) in 2004, as confirmed by NASA.
Following this, Alphabet loses $100 Billion and share of the company slid as much as 9% during regular trading with volumes nearly three times the 50-day moving average.
Google hosted the event after a day when Microsoft introduced ChatGPT integrated with Microsoft’s browser Bing.
After all this chaos, analysts said that Bard’s AI search event lacked details on how it is going to cope with Microsoft’s ChatGPT challenge.
Dennis Dick, founder and market structure analyst at Triple D Trading said, “This is a hiccup here and they’re severely punishing the stock for it, which is justified because obviously everybody is pretty excited to see what Google’s going to counter with Microsoft coming out with a pretty decent product.”
“While Google has been a leader in AI innovation over the last several years, they seemed to have fallen asleep on implementing this technology into their search product,” said Gil Luria, senior software analyst at D.A. Davidson.
“Google has been scrambling over the last few weeks to catch up on Search and that caused the announcement yesterday (Tuesday) to be rushed and the embarrassing mess up of posting a wrong answer during their demo.”
Google Spokesperson
“This highlights the importance of a rigorous testing process, something that we’re kicking off this week with our Trusted Tester program,” a Google spokesperson said. “We’ll combine external feedback with our own internal testing to make sure Bard’s responses meet a high bar for quality, safety and groundedness in real-world information.”
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