Science & Technology

Citi Expects Generative AI to Benefit Search Engine Industry

Generative artificial intelligence can have a positive impact on the development of the search engine industry.

Citi Expects Generative AI to Benefit Search Engine Industry

Source: motionarray.com

Citi analyst Ronald Josi last Monday, April 24, in a note to investors outlined his position on the prospects for the introduction of generative AI in search engines. In his opinion, the use of artificial intelligence will increase the overall search volume and reduce the cost of queries. The analyst believes that these circumstances will have a positive impact on the search engine industry.

Speaking, in particular, about Google, Ronald Josi noted that by the end of March this year, the traffic of the search engine of this technology giant increased by 3% compared to the figure recorded for the same period last year. Chrome browser continues to hold a market share of 65%, which was at the same level a year earlier.

Ronald Josi also said in a note that he will be looking for updates about Google’s AI-powered conversational chatbot Bard during the earnings announcement of Google’s parent company Alphabet, which is scheduled for late April.

Innovative technological solutions based on generative artificial intelligence have quickly become popular on the market. The beginning of the corresponding trend was the appearance of a chatbot ChatGPT from OpenAI, a company that received billions of dollars of investment from Microsoft.

Also last week, Elon Musk announced his intention to create a company that will specialize in developing a new model of artificial intelligence. Separately, he stressed his readiness to enter into a competitive struggle in this industry.

The steady growth of interest in generative artificial intelligence as a technological phenomenon and its capabilities has led to the fact that Alphabet will create a fundamentally new AI-based search engine. The company is currently facing pressure from competitors.

Last week it became known that Google will use artificial intelligence to create ads based on materials authored by people. The tech giant’s advertising business is already using AI to prompt consumers to buy certain products.

With the help of generative artificial intelligence, Google will be able to create advanced advertising campaigns and transform content in such a way that it fully meets the needs of the target audience in terms of their shopping preferences.

Last Thursday, April 20, Google and Alphabet CEO Sundar Pichai said in his blog that the tech giant has been a leader in AI since 2016 and uses appropriate technologies to improve the search system, YouTube, Gmail, and Pixel phone cameras. He also noted that the current pace of progress in terms of intensity is historically recorded.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.