Microsoft’s Bing search engine has been struggling to gain traction against its competitor Google, despite incorporating artificial intelligence (AI) enhancements. Last year, Microsoft integrated OpenAI’s generative AI technology, ChatGPT, into Bing, which was anticipated to be a game-changer in the search market. However, Bing’s market share only increased by less than 1% since the introduction of ChatGPT. Bing has long been overshadowed by Google and has faced challenges in establishing itself as a serious alternative. Prior to the integration of AI, the number of users spending time on Bing had declined by 33%.
Nevertheless, the incorporation of ChatGPT helped reverse this decline. In the second quarter of 2023, Bing’s monthly active users in the US more than doubled compared to the previous year. Moreover, users were spending 84% more time on the search engine. To maintain this momentum, Microsoft has been adding more AI tools to Bing. In October, they integrated OpenAI’s image-generating model, DALL-E 3, allowing users to create realistic images with simple text prompts. Although this addition didn’t enhance Bing’s search capabilities, it did generate a ten-fold increase in usage.
However, Google, with over 90% of the market share, continues to be the dominant player in the search engine industry. It is the default search engine on Apple hardware, giving it a significant advantage in terms of critical mass and data collection. Both Microsoft and Google are investing in AI tools as they believe it will transform the way people search and receive answers online. While Bing has more room to experiment as an underdog, it still faces challenges in competing with Google’s well-established search dynamic.
Microsoft is also optimistic that AI-powered searches will impact how advertisers allocate their spending. The current advertising model relies on costs-per-click, but AI-driven searches provide quicker and more direct answers, reducing the reliance on traditional blue link results. Advertisers have expressed interest in Microsoft’s AI efforts, noting improved outcomes. However, experts suggest that AI alone may not significantly change the search landscape, as Google’s established flywheel of search queries and result rankings remains unparalleled.
In conclusion, while Bing has made some gains with the integration of AI, it still struggles to compete with Google’s dominance. Microsoft’s ongoing investments in AI tools for Bing aim to improve user engagement and attract advertisers. However, it remains to be seen if AI alone can enable Bing to become a formidable search engine player in the market.
References:
1. StatCounter: https://gs.statcounter.com/search-engine-market-share/all/worldwide/2023
2. SensorTower: Mobile app data analysis
3. Bloomberg Intelligence analysis
4. Microsoft: Corporate executive quotes
