Generational change in the largest software category

Generational change in the largest software category

San Francisco, 4/27/2023

Alphabet, Google’s parent company, and Microsoft both discussed AI technologies during their respective quarterly calls on Tuesday. Companies have been locked in a race to embed AI into products and searches since the introduction of OpenAI’s ChatGPT, Microsoft’s Bing AI, and Google’s Bard Chatbot.

What the numbers say: In the calls, Google mentioned AI 52 times and Microsoft 36 times. This represents a huge increase from the same quarter last year, when they used the term six and four times, respectively, according to a Reuters analysis.

Google CEO Sundar Pichai likened AI to the company’s transformation from desktop to mobile. While he said Google plans to bring generative AI into its search and cloud, he was cautious as „billions of people trust Google to provide the right information.“ Meanwhile, Microsoft CEO Satya Nadella said installs of Bing apps have quadrupled since they added OpenAI technology in February. „We look forward to continuing this journey in a generational shift in the largest software category — search,“ Nadella said.

Why It Matters: Both companies said AI technology is benefiting sales, although it’s still a relatively small part of their overall business.