Nico Grant
Google’s employees were shocked when they learned in March that the South Korean consumer electronics giant Samsung was considering replacing Google with Microsoft’s Bing as the default search engine on its devices.For years, Bing had been a search engine also-ran. But it became a lot more interesting to industry insiders when it recently added new artificial intelligence technology.
Google’s reaction to the Samsung threat was “panic,” according to internal messages reviewed by The New York Times. An estimated $3 billion in annual revenue was at stake with the Samsung contract. An additional $20 billion is tied to a similar Apple contract that will be up for renewal this year.
A.I. competitors like the new Bing are quickly becoming the most serious threat to Google’s search business in 25 years, and in response, Google is racing to build an all-new search engine powered by the technology. It is also upgrading the existing one with A.I. features, according to internal documents reviewed by The Times.
The new features, under the project name Magi, are being created by designers, engineers and executives working in so-called sprint rooms to tweak and test the latest versions. The new search engine would offer users a far more personalized experience than the company’s current service, attempting to anticipate users’ needs.
Lara Levin, a Google spokeswoman, said in a statement that “not every brainstorm deck or product idea leads to a launch, but as we’ve said before, we’re excited about bringing new A.I.-powered features to search, and will share more details soon.”
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Billions of people use Google’s search engine every day for everything from finding restaurants and directions to understanding a medical diagnosis, and that simple white page with the company logo and an empty bar in the middle is one of the most widely used web pages in the world. Changes to it would have a significant impact on the lives of ordinary people, and until recently it was hard to imagine anything challenging it.
A New Generation of Chatbots
A brave new world. A new crop of chatbots powered by artificial intelligence has ignited a scramble to determine whether the technology could upend the economics of the internet, turning today’s powerhouses into has-beens and creating the industry’s next giants. Here are the bots to know:
ChatGPT. ChatGPT, the artificial intelligence language model from a research lab, OpenAI, has been making headlines since November for its ability to respond to complex questions, write poetry, generate code, plan vacations and translate languages. GPT-4, the latest version introduced in mid-March, can even respond to images (and ace the Uniform Bar Exam).
Bing. Two months after ChatGPT’s debut, Microsoft, OpenAI’s primary investor and partner, added a similar chatbot, capable of having open-ended text conversations on virtually any topic, to its Bing internet search engine. But it was the bot’s occasionally inaccurate, misleading and weird responses that drew much of the attention after its release.
Bard. Google’s chatbot, called Bard, was released in March to a limited number of users in the United States and Britain. Originally conceived as a creative tool designed to draft emails and poems, it can generate ideas, write blog posts and answer questions with facts or opinions.
Ernie. The search giant Baidu unveiled China’s first major rival to ChatGPT in March. The debut of Ernie, short for Enhanced Representation through Knowledge Integration, turned out to be a flop after a promised “live” demonstration of the bot was revealed to have been recorded.
Google has been worried about A.I.-powered competitors since OpenAI, a San Francisco start-up that is working with Microsoft, demonstrated a chatbot called ChatGPT in November. About two weeks later, Google created a task force in its search division to start building A.I. products, said two people with knowledge of the efforts, who were not authorized to discuss them publicly.
ChatGPT upended the technology industry when OpenAI introduced it in November.Credit...Jackie Molloy for The New York Times
The Samsung threat represented the first potential crack in Google’s seemingly impregnable search business, which was worth $162 billion last year. Although it was not clear whether Microsoft’s work with A.I. was the main reason Samsung was considering a change after the last 12 years, that was the assumption inside Google. The contract is under negotiation, and Samsung could stick with Google.
But the idea that Samsung, which makes hundreds of millions of smartphones with Google’s Android software every year, would even consider switching search engines shocked Google’s employees.
After some workers were told that the company was looking for volunteers this month to help put together material for a pitch to Samsung, they reacted with emojis and surprise. “Wow, OK, that’s wild,” one person responded.
A Google spokesperson said that the company was continuously improving its search engine to give users and partners more reason to choose Google, and that Android phone makers were free to embrace technologies from different companies to improve their users’ experience.
Samsung and Microsoft declined to comment.
Google has been doing A.I. research for years. Its DeepMind lab in London is considered one of the best A.I. research centers in the world, and the company has been a pioneer with A.I. projects, such as self-driving cars and the so-called large language models that are used in the development of chatbots. In recent years, Google has used large language models to improve the quality of its search results, but held off on fully adopting A.I. because it has been prone to generating false and biased statements.
Now the priority is winning control of the industry’s next big thing. Last month, Google released its own chatbot, Bard, but the technology received mixed reviews.
Google’s Bard chatbot, released in March, received mixed reviews.Credit...Matt Rourke/Associated PressPlans for the new search engine, which demonstrate Google’s ambitions to reimagine the search experience, are still in the early stages, with no clear timetable on when it will release the new search technology.
The system would learn what users want to know based on what they’re searching when they begin using it. And it would offer lists of preselected options for objects to buy, information to research and other information. It would also be more conversational — a bit like chatting with a helpful person.
But long before the search engine can be rebuilt, the Magi project will add features to the existing search engine, according to internal documents. Google has more than 160 people working full time on it, a person with knowledge of the work said.
Magi would keep ads in the mix of search results. Search queries that could lead to a financial transaction, such as buying shoes or booking a flight, for example, would still feature ads on their results pages.
That’s important for Google, since search ads are the primary way it makes money. Its chatbot, Bard, does not feature ads, and there has been anticipation in the tech industry that A.I. answers on search engines could make ads less relevant to users.
The planned search additions could also answer questions about software coding and write code based on a user’s request. Google may place an ad under the computer code answers, according to a document.
Last week, Google invited some employees to test Magi’s features, and it has encouraged them to ask the search engine follow-up questions to judge its ability to hold a conversation. Google is expected to release the tools to the public next month and add more features in the fall, according to the planning document.
The company plans to initially release the features to a maximum of one million people. That number should progressively increase to 30 million by the end of the year. The features will be available exclusively in the United States.
Google has also explored efforts to let people use Google Earth’s mapping technology with help from A.I. and search for music through a conversation with a chatbot, a Google director wrote in a document.
Other product ideas are in various stages of development. A tool called GIFI would use A.I. to generate images in Google Image results. Another tool, Tivoli Tutor, would teach users a new language through open-ended A.I. text conversations.
Yet another product, Searchalong, would let users ask a chatbot questions while surfing the web through Google’s Chrome browser. People might ask the chatbot for activities near an Airbnb rental, for example, and the A.I. would scan the page and the rest of the internet for a response.
Jim Lecinski, a former Google vice president of sales and service, said the company had been goaded into action and now had to convince users that it was as “powerful, competent and contemporary” as its competitors.
“If we are the leading search engine and this is a new attribute, a new feature, a new characteristic of search engines, we want to make sure that we’re in this race as well,” Mr. Lecinski, a professor of marketing at Northwestern University, said in an interview.
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