Microsoft's integration of OpenAI´s AI chatbot ChatGPT into Bing aimed to enhance the search experience and potentially challenge Google's dominance. However, six months post-integration, the market share for Bing remained largely unchanged. Despite the integration, Bing's global market share hovers around 3%, while Google's share slightly decreased from 93% to 92% according to latest data from Statcounter and Similarweb.
Global Search Engine Rankings
In July 2023, Google continued to dominate the global search engine market with a 92.08% share, according to StatCounter. Bing followed with a 2.98% share, while Yandex, Yahoo!, and Baidu held 1.36%, 1.17%, and 0.94% respectively. SimilarWeb's data for June 2023 showed Google at 90.68%, Bing at 3.23%, and Yahoo at 3.17%.
The Wall Street Journal quotes Daniel Tunkelang, a former Google and LinkedIn employee and search market expert, saying that Bing's AI-enhanced efforts have been “cute, but not a game-changer”. According to Tunkelang, the integration of ChatGPT into Bing did not significantly increase its user base or provide substantial real-world value.
This is also reflected by recent adjustments in stock prices. In comparison to their levels of summer 2022 before the release of ChatGPT and the AI hype among investors, Microsoft´s stock had been performing better in the first half of this year, reaching a relative premium of more than 20 percent in comparison to Alphabet´s stock. Recently this gap has been closing again, mostly influenced by earnings results of both companies and the belief, that Google might not be positioned that badly in the AI race as many thought just a few months ago.
Why Bing Isn't Outperforming Google
Despite its capabilities, ChatGPT or Bing Chat are not primarily designed to find factual information or existing online resources. Instead, it generates text based on patterns from vast text samples. This means that while it might provide answers, it doesn't always offer verifiable sources. The Associated Press recently updated its guidelines, advising against using generative AI, like ChatGPT, for creating publishable content. The guidance emphasized treating AI outputs as “unvetted source material”. Apart from offering Bing Chat, Microsoft is betting to attract users with its now AI-powered Bing Search with results enriched by generative AI. But Google has in the meanwhile launched its own chatbot Bard and its AI-powered Search Generative Experience. Internet users familiar with all these products might just not see any specific added value offered by Bing.
The integration of ChatGPT into Bing underscores the challenges of leveraging AI in the search engine market. While AI has been around for decades, its consumer-facing applications are relatively new. Google's dominant position was achieved by offering a superior search engine experience, and it remains to be seen if AI integrations can significantly disrupt this market. As AI continues to evolve, tech giants like Microsoft and Google are exploring other AI-driven opportunities with potential business impacts.
