Microsoft challenges Google head-on by incorporating AI into its Bing search engine and Edge browser.

In an effort to compete with Alphabet’s Google search engine, Microsoft has upgraded its Bing search engine and Edge browser.

Microsoft Corp. announced on Tuesday that it is integrating artificial intelligence into its Bing search engine and Edge web browser as part of an effort to recapture the lead in consumer technology areas where it has lagged.

Microsoft, the company behind the Windows operating system, is investing billions of dollars in artificial intelligence as it directly competes with Alphabet Inc.’s Google, which has long been ahead of Microsoft in search and browser technology.

Now that Microsoft is releasing an intelligent chatbot to coexist with Bing’s search results, more users will have access to AI that can summarise web pages, synthesise many sources, and even create emails and translate them. It anticipates an additional $2 billion in search advertising revenue for every percentage point of market share it increases.

By collaborating with the firm OpenAI, Microsoft hopes to surpass its Silicon Valley adversary and possibly reap significant financial benefits from technologies that accelerate the development of content by automating chores, if not actual jobs. That would have an impact on both consumer internet use and commercial solutions like Microsoft’s cloud computing and collaboration tools.

At a press conference at the company’s headquarters in Redmond, Washington, company CEO Satya Nadella said, “This technology is going to change pretty much every software category.”

The company currently controls an estimated tenth of the search market. However, a lot of investors believe that new technologies will benefit everyone. Alphabet gained 4.6% on Tuesday, while Microsoft’s shares ended the day 4.2% higher.

With the introduction of ChatGPT, the chatbot sensation from OpenAI, the public first became aware of the ability of so-called generative AI, which can generate almost any text or image. People now have new ways to consider the possibilities of marketing, producing term papers, sharing news, or how to query information online thanks to its human-like reactions to every demand.

On desktop computers, Microsoft’s new Bing search engine is currently active in a limited preview. It will soon be made available for mobile devices. Microsoft officials stated that the company’s AI may still provide factually incorrect information known as a hallucination, thus it is hoped that user feedback would help it develop. It has continued to work on measures to prevent technology abuse in the interim.

What Microsoft refers to as the Prometheus model, which is OpenAI’s most potent technology and is informed as necessary by real-time web data from Bing, is the foundation of the new Bing. This means that Bing’s chatbot may update users on current happenings, which is a step forward over ChatGPT’s replies, which will only provide data as of 2021.

Microsoft’s corporate vice president for search and AI, Jordi Ribas, told Reuters that the technological advancements his team saw last summer gave the company confidence to proceed with an AI-infused Bing.

The search engine at Microsoft is powered by “new, next-generation” technology from OpenAI, according to the company’s chief financial officer. However, officials declined to say whether this referred to the startup’s eagerly awaited GPT-4 upgrade.

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