The nascent global chatbot market is already big - and it’s getting bigger.
According to industry figures, the global chatbot market has grown from $2.25 billion in 2021 to $6.92 billion in 2023.
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The two leading lights in the AI chatbot sector are Chat GPT from OpenAI and Bard from Google. Both have been issuing system upgrade grenades at each other in 2023. This week, it’s Google stepping up to the plate with a new feature that promises to make AI-based internet searches more “conversational” according to company executives.
The announcement was made at Google’s I/O conference on Wednesday, May 17. In it, the tech titan rolled out a new AI language model called PaLM 2 that enables software engineers to train chatbots to better respond to human user requests.
"We're at an exciting inflection point," Chief Executive Officer Sundar Pichai said at the conference. "We have an opportunity to make AI even more helpful for people, for businesses, for communities, for everyone."
Google’s new AI-based language model has all the features and tools to take on Open AI’s GPT-4 at a whole new level.
“PaLM 2 models are stronger in logic and reasoning, thanks to broad training in logic and reasoning,” Pichai noted at the conference. “It’s also trained on multilingual text spanning over 100 languages.”
PaLM 2 is superior at a range of text-based tasks compared to the software tool’s previous version, company officials say.
Google senior research director Slav Petrov, speaking at a media roundtable at the I/O show, indicated PaLM 2 is a big upgrade at text-based tasks, especially in key areas like translation, coding, and human reasoning. “It's significantly improved compared to PaLM 1, Petrov added. (PaLM 1 was introduced in April, 2022.)
Analysts say Google is looking to stabilize its top-tier status in the internet search market – and the PaLM 2 upgrade should be a key market accelerator, especially against Microsoft which owns OpenAI.
"Consumers now have more access to choice, so AI is Google's market to lose," said Zeno Mercer, research analyst at investment advisory firm ROBO Global.
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