OpenAI CEO Sam Altman
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AI may be the hottest thing in the tech industry, but OpenAI’s ChatGPT isn’t on pace to challenge Google’s dominance as the search engine leader, according to a new analysis from Bank of America Securities. No.
BofA analyst Justin Post wrote in a note Wednesday, citing data from Sensor Tower, that analysts found app downloads for ChatGPT and Microsoft Bing have slowed in recent weeks.
According to the memo, ChatGPT downloads on iPhones in the US fell 38% month-over-month in June. Bing app downloads, including ChatGPT-based chatbots in the US, also dropped 38% in June.
The memo, which cited data from SimilarWeb, said Google’s search engine market share rose slightly year-over-year to more than 92 percent. Microsoft’s Bing, which uses OpenAI’s ChatGPT technology, has fallen 40 basis points on an annual basis to about 2.8% market share.
The declining focus on ChatGPT and similar Large Language Models (LLMs) highlights the investment risks of companies such as Google and Microsoft. These companies have poured billions of dollars into the idea that recent advances in AI could lead to the development of the next generation of search engines to replace language models. current winner. Both companies have invested hundreds of millions of dollars in AI startups, as have other tech giants such as Nvidia.
But if ChatGPT adoption is already slowing, that could be an indication that the technology may not be seriously threatening Google’s dominance in search, and the company is looking to attract new advertisers. Analysts write that they may need to find other uses for LLM, such as tools.
“With regards to Google stock, LLM concerns about Google search appear to have shifted from market share risk to monetization risk, but search share looks healthy enough that Google is turning LLM (chat) results into commercial queries. The urgency to consolidate may not be as high,” Post wrote. Note.
The ChatGPT app was released in May and is currently only available for iPhone. Bank of America analysts believe his upcoming OpenAI app for Android could drive adoption.
ChatGPT users can also access chatbots through websites, as well as apps and the Bing search engine. Bank of America analysts said visits to ChatGPT fell about 11% on a monthly basis to just over 51 million per week, about 2% of Google’s estimated web traffic. It is assumed that it is only
