OpenAI’s ChatGPT Makes Headway In Search, Threatening Google’s Reign – Alphabet (NASDAQ:GOOGL)

OpenAI‘s chatbot, ChatGPT, is gaining traction in the online search market, potentially challenging Google‘s GOOGL long-established supremacy.

What Happened: A survey conducted by brokerage firm Evercore ISI disclosed that ChatGPT was the favored search provider for 5% of 1,000 respondents, a significant increase from 1% in June. Millennials were identified as the primary drivers of this uptake.

Despite the rise, Google still commands the majority of the search market, with 78% of respondents choosing it as their first preference, a slight decrease from 80% in June.

Nonetheless, even a minor shift in market share is noteworthy in the online search industry, which is the foundation of Google’s ad business.

According to the survey, ChatGPT’s modest gains suggest a potential shift in Google’s status as the internet’s main gatekeeper.

OpenAI’s generative AI technology is revolutionizing how millions access digital information, sparking debates about the sustainability of Google’s search dominance.

Also Read: Whistleblowers Accuse OpenAI Of Hindering Staff From Reporting AI Risks

In October, OpenAI rolled out a full search feature for ChatGPT and also secured a partnership with Apple Inc. AAPL, placing ChatGPT prominently on numerous iPhones. Both moves are perceived as direct challenges to Google.

Despite these advancements, Google remains significantly ahead, as indicated by positive results from Evercore’s survey. Google’s Gemini, a ChatGPT-like assistant, and AI Overviews, a feature that summarizes search results, were deemed more effective by 71% of Google users.

Why It Matters: The rise of ChatGPT signifies a potential shift in the online search landscape. Google’s dominance has been unchallenged for years, but OpenAI’s advancements suggest a new competitor is emerging.

The partnership with Apple and the introduction of a full search feature for ChatGPT are strategic moves to increase its market share.

However, it remains to be seen if ChatGPT can monetize search queries as effectively as Google, a factor critical to its success.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.