Microsoft Beefs up ChatGPT and Bing in Wide-Ranging AI Product Launch

The Microsoft logo is pictured outside the headquarters in Paris, on Jan. 8, 2021. (AP)
The Microsoft logo is pictured outside the headquarters in Paris, on Jan. 8, 2021. (AP)
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Microsoft Beefs up ChatGPT and Bing in Wide-Ranging AI Product Launch

The Microsoft logo is pictured outside the headquarters in Paris, on Jan. 8, 2021. (AP)
The Microsoft logo is pictured outside the headquarters in Paris, on Jan. 8, 2021. (AP)

Microsoft Corp on Tuesday started making available to users a host of AI upgrades, including to ChatGPT, its search engine Bing as well as to cloud services - an expansive launch that seeks to narrow the gap with Alphabet Inc's Google.

Among key changes is the rollout of live search results from Bing to ChatGPT, the viral chatbot from its partner OpenAI whose answers originally were limited to information as of 2021.

Now, ChatGPT can pull from Bing web results for paid subscribers and will do so soon for free users, the company said at its annual Microsoft Build conference.

The company also is expanding so-called plug-ins for Bing, using a standard embraced by OpenAI and letting businesses transact more easily with consumers in its search engine.

For instance, one such tool can help a web surfer looking for dinner ideas with a suggested recipe and ingredients that could then be ordered from Instacart in a single click, said Yusuf Mehdi, Microsoft's consumer chief marketing officer.

"This is a profound change to how people will use the web," he said in an interview.

Asked if Microsoft could sell ad placements related to the plug-ins, Mehdi said the company hasn't gotten to that point but that "the model for how people acquire customers is changing."

The updates to Bing are part of Microsoft's effort to capture more of the estimated $286 billion market for search advertising globally.

Like Microsoft, Google has also recently showcased generative AI upgrades for its search engine, learning from past data how to respond to open-ended queries where no clear answers exist on the web.

Which updated search engine consumers prefer remains unclear, as Google has yet to roll out its changes widely. However, its standalone competitor to ChatGPT, a chatbot known as Bard, is available and already includes answers informed by Google's search results.

Asked if ChatGPT will supplant Microsoft's Bing now that it includes recent information from the web, Mehdi said the programs offer different experiences but that Microsoft would benefit either way, with citations in ChatGPT driving traffic to Bing.

New cloud service features include allowing businesses to build plug-ins connecting to Microsoft 365 Copilot, its AI assistant for enterprises.

A plug-in could let a staffer in plain language ask the AI to book travel or explain legal issues with vendor contracts, Microsoft said. Microsoft aims to let companies configure their own AI copilots more broadly.

The company also said it will make an AI assistant, or copilot, available as a preview for some users of its widespread Windows operating system starting in June. It also announced ways it is helping consumers determine if its AI generated an image or video, similar to an announcement by Google.



OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI is venturing into a territory long dominated by Google with the selective launch of SearchGPT, an artificial intelligence-powered search engine with real-time access to information from the internet.

The move, announced on Thursday, also places the AI giant in competition with its largest backer Microsoft's Bing search and emerging services such as Perplexity — a search-focused AI chatbot firm backed by Amazon founder Jeff Bezos and semiconductor giant Nvidia.

Shares of Google's parent company Alphabet ended 3% lower on Thursday after OpenAI's announcement.

OpenAI said it has opened sign-ups for the new tool, which is currently in the prototype stage and is being tested with a small group of users and publishers. The company plans to integrate the best features from the search tool into ChatGPT in the future.

"AI-powered search tools from OpenAI and Perplexity re-affirm search as a content engagement model but pressure Google to be better at its own game," Canaccord Genuity analyst Kingsley Crane said.

Google dominates the search engine market with a 91.1% share as of June, according to web analytics firm Statcounter.

SearchGPT will provide summarized search results with source links in response to user queries, OpenAI said in a blog post. Users will also be able to ask follow-up questions and receive contextual responses.

The company will give publishers access to tools for managing how their content appears in SearchGPT results. News Corp and The Atlantic are publishing partners for SearchGPT.

SearchGPT signals a closer collaboration between publishers and OpenAI, following content licensing agreements with major organizations like Associated Press, News Corp and Axel Springer.

"Newer AI-powered search providers could face challenges of their own, with Perplexity already facing pending legal action from publishers like Wired and Forbes, and Condé Nast," said Crane.

Major search engines have been trying to integrate AI into search since ChatGPT first launched in November 2022. Microsoft, through its early investment, adopted OpenAI technology for its Bing search engine, while Google rolled out AI-powered summaries for the wider public at its developer conference in May.

Google did not respond to a Reuters query on the potential impact of SearchGPT on its business.

Reuters had earlier reported on OpenAI's plans around AI search in May.