Business On The Brink for The Week of 11/8

News from the frontlines of AI for the week of November 08, 2024

1. The Most Important AI News of the Week

This week, OpenAI launched ChatGPT’s new search feature, transforming it into an AI-powered search engine. This enhancement allows ChatGPT to access real-time web information, providing users with up-to-date responses and direct links to sources. Initially available to ChatGPT Plus subscribers, OpenAI plans to extend this feature to free and enterprise users in the coming weeks.

2. The AI Component You Need to Know About

Meta is reportedly developing its own AI-powered search engine to reduce reliance on Google and Microsoft’s Bing. This initiative aims to integrate conversational AI across Meta’s platforms, including WhatsApp, Instagram, and Facebook, potentially reshaping the search landscape and challenging existing search engine dominance.

3. Industries and Companies Impacted by AI

The advertising and digital marketing sectors are experiencing significant shifts due to advancements in AI-driven search capabilities. Companies heavily investing in Google search results through SEO and PPC are reassessing their strategies. The integration of AI into search engines like ChatGPT and Meta’s forthcoming platform is altering user behavior, leading to a decline in traditional search engine usage. This trend necessitates a strategic pivot for businesses to maintain visibility and engagement.

4. An Example of AI Transformation in Business

Perplexity AI, an AI-powered search engine, has been leveraging large language models to provide conversational search experiences. By integrating real-time web data, Perplexity offers users concise and accurate answers, demonstrating the potential of AI in transforming traditional search methodologies. This approach has set a precedent for other companies exploring AI-driven search solutions.

5. Len Ward’s Weekly Takeaway

Companies investing in Google search results via SEO or PPC need to reallocate some of their marketing investments toward the emerging problem-solving capabilities of large language models (LLMs). Additionally, there should be a heightened focus on Bing, as it serves as a source for some of these AI-driven search results. The crux of the matter is that once users engage with LLMs for search and interaction, their inclination to use traditional search engines diminishes. Google’s stronghold on this segment of the advertising world is weakening, regardless of contrary claims. While there may be an initial surge in PPC ad spending due to declining organic search traffic, the underlying cause is the growing adoption of LLMs like ChatGPT and their integrated search functionalities.