Google Search is getting generative AI in strike at Microsoft

Daniel Howley

Google (GOOG, GOOGL) on Wednesday announced major generative AI-powered updates to its ubiquitous search engine. The new features, which Google is offering as a test for now, allow you to search by simply typing questions as sentences and instantly get conversational replies.

For instance, you can search for things like "Good bike for 5-mile commute with hills." Search will then provide you with the generative AI page, which will provide you with a list of suggestions for things to look for when searching for bikes for commuting.

Below that, you'll see potential follow up questions you can ask, which will pull you into a conversation panel complete with the ability to link directly to bike retailer websites.

Google is bringing generative AI to its search engine. But it's just a test for now. (Image: Google)
Google is bringing generative AI to its search engine. But it's just a test for now. (Image: Google) (google)

During a live stage demo, Google's Search Generative Experience pulled up answers for "Why do whales like to sing?" The app quickly provided a list of potential reasons for why whales sing, provided images of whales and allowed the user to ask follow up questions.

Google is positioning generative AI as the future of search. And as the company's most important product — and largest revenue source — it's no wonder it's moving fast to add the capability to the platform.

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The move also comes after Microsoft (MSFT) launched its own generative AI-powered search via its Bing platform in February. That instantly put Microsoft in the lead in the AI conversation and Google in the hot seat. The company then launched its own Bard chatbot but it was met with criticism about its accuracy.

Google is still the leader when it comes to search. According to StatCounter, the company controls 93% of global market share, while Microsoft's Bing has roughly 3%. For Microsoft, however, it's not about stealing the lead. Rather, it's about pulling small portions of share away from Google.

According to Microsoft, just one percent of market share in search is worth $2 billion of revenue. In other words, even a small portion of the pie is worth the investment.

Now it's up to Google to prove it deserves to stay in the lead.

Correction: Google's generative search feature is called Search Generative Experience. A prior version of this article referred to it as Bard.

By Daniel Howley, tech editor at Yahoo Finance. Follow him @DanielHowley

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