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Sinan Aral on Yahoo!Finance: What ChatGPT Means for Microsoft, Google

January 26, 2023

“Google is calling big names back to the company to talk about it, to think about strategy… And there’s a good reason for that,” MIT IDE Director, Sinan Aral told Yahoo!Finance on January 25. “ChatGPT is potentially an existential threat to Google’s business” because 60% of its revenue is from search. “ChatGPT offers an alternative to search, which is a one-stop question answering shop powered by AI.”

In an interview, Aral offered analysis of the new capabilities and how it can boost Micorsoft’s business while harming Google’s. “Microsoft has been struggling to compete on search with Bing, although they’ve been doing better over the years,” he said,” but this could change the game of search entirely, which is core to Google’s business.”

Google can still take advantage and use the technology to its advantage if it “refocuses and streamlines its approach to AI.” Obviously, Google is no slouch in AI, Aral noted. “They have some of the smartest minds in deep learning, machine learning, and statistical modeling. However, their applications of AI have not been competitive with things like ChatGPT.”

Watch the video to learn how “we’re experiencing one of the greatest upheavals in the labor market that we’ve seen in a long time.”