Google’s AI chatbot underwhelms on launch with factual errors

Some of the worst product demos in history:

• Elon Musk’s “bulletproof” Cybertruck glass breaks.
• Steve Jobs’ iPhone refusing to connect to WiFi.

Add Google to the list.

On Monday, Google (NASDAQ:GOOG) released their AI chatbot Bard along with this demo… Can you spot the factual error?

Astronomy buffs would point out to you that JWST did not, in fact, “take the very first pictures of a planet outside of our own solar system.”

Google has a lot of work ahead. Yesterday, Google held an AI event showing Bard’s capabilities — hoping to top Microsoft’s Tuesday AI event.

That, it did not do. During the event, $GOOG fell nearly 8%, with investors disappointed over the demo and event.

The “Microsoft or Google” debates are running hot, and you’ll find investors on both sides.

The Microsoft bulls:

• “Microsoft’s investment into OpenAI, which started years ago, could potentially prove to be some of best money ever spent” — JPMorgan analyst Mark Murphy.
• AI will bring “more digital advertising dollars, more subscription revenue, and more consumption across Azure and its overall tech stack” — Mizuho analyst Gregg Moskowitz.

The Google bulls:

• Microsoft “will need a crowbar to pry away advertisers from Google” — Jefferies’ analyst Brent Thill.
• Microsoft has a “mountain to climb” to overtake Google — per one UBS analyst.

But Google has much more to lose than Microsoft.

Google’s parent company Alphabet controls 93% of the search market which also makes up 58% of its sales. While Microsoft’s search makes up ~6% of its revenue.

For Microsoft, it’s all gravy.