AI and Conversational Interfaces are revolutionizing the digital advertising format. Microsoft and Google are head-to-head in their efforts to develop the best AI-assisted search experience, making advertisers preparing for a major disruption. OpenAI’s ChatGPT united the enthusiasm of one million users just after five days of its release, per data.ai. In response to this, Microsoft launched chatsbot-style Bing consisting of OpenAI’s GPT-4 language model. Similarly, Google is striving to become the leader of the search advertising market by developing suites of AI-enabled services.
As a result of these advances, user behavior is slightly shifting. Similarweb’s US site visit data gives an early estimation of this. Although more users are trying Bing, it isn’t certain how long they will continue to use it. Thus, the uncertainty of how to monetize AI-assisted search results still stands. Unquestionably, it would likely reduce the reach of publishers and diminish the profitability of programmatic advertising.
When it comes to consumers and their trust towards AI-assisted search, 49% of US adults are interested in AI-powered online search, according to Morning Consult survey in February, 2023. But, Ipsos noted that only 27% of people trust the search results generated by AI. This mistrust is mostly due to the amount of naive mistakes produced from the AI.
Google and Microsoft are constantly gathering data to provide the best answer to users’ inquiries. While OpenAI’s chatbot interface could disrupt digital advertising, it is crucial to research the practicality and understand the potential harms caused by it, in order to make the most of its usage without leading to foreclosure of the open web.
Insider Intelligence has published a report dedicated to ChatGPT and Generative AI in Search. In order to gain more insights into the topic, users can purchase the full report using code CHATGPT100 for $100 off.
