28, February, 2024
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Navigating the AI Wave: Microsoft Bing’s Struggle Against Google’s Search Dominance

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Microsoft’s Bing search engine integrated OpenAI’s ChatGPT in February, aiming to revolutionize the online search experience. However, despite AI-powered conversational enhancements, Bing is yet to make a significant impact on Google’s search dominance, holding only a 3.4% global market share at the end of 2023.

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Before the ChatGPT integration, Bing users spent 33% less time on the platform. Yet, post-AI update, monthly active users in the US doubled to 3.1 million in Q2 2023, reaching 4.4 million by year-end. User engagement soared, with users spending 84% more time on Bing, according to SensorTower data.

To bolster Bing’s performance, Microsoft introduced OpenAI’s image-generating model, DALL-E 3, in October. While not impacting search capabilities, it significantly increased user engagement, as noted by Microsoft’s Corporate Vice President of Search and AI, Jordi Ribas, citing a tenfold usage increase.

In response, Google, with its 90% market share and default search engine status on Apple devices, introduced the “search generative experience” (SGE) in May 2023. Google plans to integrate its large language model, Gemini, into SGE, leveraging its substantial advantage.

Both Microsoft and Google anticipate a revolution in online search with generative AI. Harvard Business School Professor Shane Greenstein sees this era as the “gold rush moment” for AI in search.

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However, doubts linger regarding Bing’s ability to catch up to Google’s well-established dominance, given Google’s data advantage as users contribute more information, shaping the future of online search.

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