Alphabet, the parent company of Google, has launched a waiting list for its new AI chatbot tool called Bard. This move is seen as a direct challenge to Microsoft’s Bing, which has been making waves with its OpenAI demonstrations in recent months. While some analysts have expressed concerns over Google losing market share, Stifel analyst Mark Kelley believes these concerns are overblown.
Kelley argues that Google is well-positioned to compete with Microsoft in the chatbot space. While the recent press surrounding Microsoft’s OpenAI demonstrations has been impressive, Kelley believes that Google will offer similarly convincing products within its more excellent search business that will keep users satisfied.
According to Kelley, there is some concern about the incremental costs of running a Large Language Model (LLM) and the impact on margins. However, he does not believe there will be a material impact on Search margins as most search queries are unlikely to require an LLM.
Kelley’s positive outlook on Google’s ability to compete with Microsoft in the chatbot space is reflected in his Buy rating and $130 price target for GOOGL stock. He believes that launching Bard and other upcoming products will help Google maintain its dominant position in the search market.
The chatbot space is becoming increasingly competitive, with many companies investing heavily in AI technology to improve customer service and engagement. Chatbots can help businesses save time and money by automating routine customer service tasks, such as answering frequently asked questions.
Alphabet’s entry into the chatbot space with Bard is significant, demonstrating the company’s commitment to innovation and technology. With Google’s extensive resources and expertise in AI and machine learning, Bard has the potential to be a game-changer in the chatbot space.
In conclusion, Alphabet’s launch of Bard is an exciting development in the chatbot space. While Microsoft’s OpenAI demonstrations have garnered significant attention, analysts like Mark Kelley believe that concerns over Google losing market share are overblown. With its extensive resources and AI and machine learning expertise, Google is well-positioned to compete with Microsoft in the chatbot space. Launching Bard and other upcoming products will help Google maintain its dominant position in the search market.
Moreover, the launch of Bard also highlights the increasing importance of chatbots in the tech industry. With the rise of messaging apps and social media platforms, chatbots have become vital for businesses to engage with their customers. Chatbots can respond instantly to customer inquiries, which can help companies to improve customer satisfaction and retention.
In addition, chatbots can also help businesses collect valuable data about their customers. Companies can gain insights into customer preferences and behavior by analyzing customer interactions with chatbots. This information can be used to improve products and services and develop targeted marketing campaigns.
As more businesses adopt chatbots, the market for chatbot technology is expected to increase in the coming years. According to a report by MarketsandMarkets, the global chatbot market is projected to reach $9.4 billion by 2024, growing at a compound annual growth rate (CAGR) of 29.7% from 2019 to 2024.
With the launch of Bard, Alphabet is well-positioned to capitalize on this growing market. The company’s extensive resources and expertise in AI and machine learning give it a significant advantage over other players in the chatbot space. Bard can become a leading chatbot tool, helping businesses improve their customer engagement and drive growth.
In conclusion, Alphabet’s launch of Bard is an exciting development in the chatbot space. While Microsoft’s OpenAI demonstrations have garnered significant attention, analysts like Mark Kelley believe that Google’s position in the search market is secure. With the growing importance of chatbots in the tech industry, the launch of Bard highlights Alphabet’s commitment to innovation and technology. As the chatbot market grows, Alphabet is well-positioned to capitalize on this trend and drive growth in the coming years.