CEO Satya Nadella of technology behemoth Microsoft (NASDAQ:MSFT) announced plans to integrate the latest buzz, ChatGPT, into the company’s search engine, Bing. Nadella noted that artificial intelligence (AI)-enabled search engine is one of the greatest launches in Microsoft’s history in the past 15 years. Not just that, generative AI-powered technology will also be added to Microsoft Edge, making it a more robust browser.
The newer Bing will have capabilities to answer questions about current topics, news, train schedules, and product pricing. The technology also allows users to take the initial answers and alter them to get more detailed responses. For example, they will be able to compare and contrast television models as per gaming requirements, budgets, etc.
The plan challenges rival Alphabet’s (NASDAQ:GOOGL) (NASDAQ:GOOG) search engine, which commands roughly 90% of the market while Bing stands at only around 9% (as per Statista). The combination of AI with Search will enable users to get more detailed responses to queries. The launch took place on Tuesday on selected desktops, with limitations. Users will only be able to ask Bing finite questions in the initial launch phase.
Commenting on the huge opportunity that AI-powered search has for Microsoft, Nadella said in a CNBC interview, “I’ve never ever felt this liberated in terms of opportunity in the days ahead.”
Remarkably, just last month, Microsoft announced a multi-billion-dollar investment in ChatGPT maker OpenAI. The latter’s CEO, Sam Altman, was also present at Microsoft’s event yesterday and confirmed that OpenAI’s GPT-3.5 language technologies have been incorporated into Bing to boost performance.
The generative AI craze is certainly catching on. Just on Monday, Google announced its own version of ChatGPT-powered technology, called Bard, which will be launched in the coming weeks. Also, Chinese rival Baidu (NASDAQ: BIDU) is launching its own version, called Ernie Bot, in March. You can visit TipRanks’ ChatGPT stocks to learn more about the companies harnessing the technology.
What Is the Prediction for Microsoft Stock?
On TipRanks, Microsoft commands a Strong Buy consensus rating based on 17 Buys, two Holds, and one Sell rating. Also, the average Microsoft stock prediction of $280.10 implies 4.7% upside potential from current levels. This is in addition to the 11.7% gained so far in 2023.
