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Google Bard is Alphabet’s AI chat service.
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People sure do like to chat with computers. That’s the biggest conclusion from a new BofA Global Research survey about consumers’ use of generative artificial intelligence chatbots.
According to a research note Monday by Justin Post, the bank’s internet analyst, the survey of more than 1,100 U.S. internet users aged 18 to 55 found widespread usage of Open AI’s ChatGPT,
Alphabet
’s
(ticker: GOOGL) Bard, and
Microsoft
’s
(MSFT) Bing Chat. The findings have substantial implications for the internet search business, online advertising, and the way people find information.
Post reported that 59% of those surveyed use ChatGPT, while 51% use Bing, and 34% use Bard. About 30% of respondents use Bing and Bard daily, vs. ChatGPT at 23%, while 40% use each several times a week.
Asked which they would use if only allowed access to one of the three, 49% picked ChatGPT, followed by Bing at 26% and Bard at 21%. Two-thirds of respondents already have or plan to download ChatGPT on their mobile phones.
One factor that makes that finding surprising is that ChatGPT lacks any current information about news, sports, weather, or anything else from after the completion of the service’s training model in mid-2021.
Meanwhile, Post also pointed out that 45% of respondents said they will use Google more as Alphabet adds generative AI features to search, while 19% said they would use Google less due to higher usage of both Microsoft’s Bing and ChatGPT.
As for monetization, roughly 80% said they would use Bard, Bing, or ChatGPT more or the same if ads were added. Half indicated they would pay for a premium subscription to ChatGPT, while 43% would pay for Bard and 36% for Bing.
On the surface, the findings seem to suggest reason to worry about Google’s ability to maintain its dominant position in internet search, but Post remains upbeat about the company’s outlook. “We are bullish (potentially more than the Street) as we think Google search will see a strong benefit from AI tools for advertisers in 2023,” he wrote. And over the long term, AI will “will improve ad relevance in results,” he said.
Also Monday morning, UBS analyst Lloyd Walmsley reduced his rating on Alphabet stock to Neutral from Buy, citing concerns that if a user search query is answered by AI, reducing the need to click through to websites, it could result in slower growth in ad revenue.
Alphabet shares on Monday were off 2.8%, to $118.97 early Monday afternoon, underperforming the 0.8% decline in the Nasdaq Composite.
Write to Eric J. Savitz at eric.savitz@barrons.com
