Google's panic Announcement on Bard | Will Google Bard kill Chat GPT? | Pavan Sathiraju
127Please find the link to the Management Consulting Program that I personally lead at Blue Chapter! You receive personal feedback every week & work on an international live strategy project. This is not a mock project & our students proudly speak about this live experience in their interviews:)
https://bluechapter.com/consulting-experience-program-gen/
If you are applying for fall 2023/2024 MBA programs, check out the global MBA fellowship program:
https://bluechapter.com/global-mba-fellow/
****
Follow me here
LinkediIn - https://www.linkedin.com/in/pavan-sathiraju/
Instagram - https://www.instagram.com/pavan.sathiraju
****
Google made an interesting announcement yesterday about the launch of Google Bard. What is Google Bard? It is an experimental conversational AI based on Google Lambda. Google has opened it to trusted testers before making it widely available to the public. In this video, I’ve covered Google Business Model and Microsoft Business Model with respect to the debate over Chat GPT vs Google Bard. This video will also help you understand structured communication.
Google’s Q3 2023 revenues from advertisement were $54 Billion and the total revenue was $69 Billion. So the Ad revenue is close to 75% of the total revenue of Google. This shows Google’s huge dependence on Ads as its primary source of revenue. The conversational nature of AI is very different from Google Search. If you ask an AI to tell you how you should get into programming, the AI wouldn’t recommend you any Ads of the programming courses by Upgrad. The first point of difference between Chat GPT vs Google Search is that Google Search shows you Ads while Chat GPT does not.
Google cannot take off these Ads because they make up a huge part of its revenue. Suppose Google has to figure out how to incorporate Ads in conversational AI then the problem would be with ranking these Ads. The Ad rank is calculated on the basis of the bid amount in Google Search but the same cannot be done in case of having a conversation with an AI. Even if Google is able to include Ads in this mix then the Ad revenue will still drastically come down. So, it’s a very risky move for Google to include Ads in Google Bard.
From a market share perspective, Google has 90-92% market share. If Google makes any changes in its already successful algorithms then it will be a huge risk for it from a market share perspective. Bing can capitalize on any mistakes made by Google Search pretty quickly and that’s why it’s not possible for Google to make any major changes with their cash-generating asset that is Google Search.
These issues apply to Microsoft as well but still ChatGPT is a good fit for Microsoft. In order to understand this we must look at Microsoft Q3 2023 results. For Microsoft Productivity and Business processes account for $17 Billion in revenues. Intelligent Cloud services account for $21.5 Billion in revenues right behind Amazon AWS. Personal Computing under which Bing and Windows OS are included accounts for $14 Billion in revenue. This means that none of the issues with Microsoft are related to the search. What Microsoft will potentially do is include ChatGPT with their intelligent cloud. Being already ahead of Google Cloud, if Microsoft included ChatGPT in their intelligent cloud mix then it would be easier to search.
ChatGPT can give contextual answers to my searches if I’m working for a company and want to retrieve a particular piece of information. This cannot happen in Google Search because you’d have to provide a lot of contexts and your previous search and given information will not be saved or used by the search engine. Microsoft is very clear about monetizing ChatGPT and making it a paid service at some point which prevents the Ads from coming into the picture. Any additional revenue from ChatGPT is a bonus for Microsoft but a huge hindrance for Google. Hope you found this video helpful, make sure to drop your suggestions and feedback in the comments.
About Me
I publish meaningful and valuable content on this channel. My aim is to make business news more accessible and easy to grasp. If you find my videos informative and insightful then make sure to subscribe and leave a comment. I’ll see you in the next video
*****
Chapters
0:00 - Intro
0:27 - Video Pointers
0:55 - Google Business Model
1:57 - Google Bard Ads possible?
3:00 - Google Market Share
3:40 - Why ChatGPT suits Microsoft?
5:12 - Microsoft’s ChatGPT Monetization
6:04 - Outro