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Google鈥檚 AI Overviews and the Meta AI Chatbot鈥攏ow embedded on Meta platform search bars鈥攁re easing users into adopting generative AI search. Some 61% of Gen Zers are using AI tools instead of search engines, according to December 2023 data from Vox Media and The Circus. Use this chart:. Showcase how Google is strengthening its search dominance. Determine where to spend search ad budget.

Amazon is also testing an AI chatbot feature to enhance its search functionality, aiming to offer personalized product recommendations and comparisons to users. This feature, designed to streamline the shopping experience by mimicking the service of experienced store associates, could launch in the US as early as January.

Chatbots need to move beyond self-service features. Too much focus on providing the same access to self-service features across channels is translating to low consumer demand for chatbots. Instead, banks should integrate predictive and proactive financial insights into chatbot interactions. For example, notifying a customer of a price increase in a rarely used subscription can unlock cost savings.

It could launch ad-supported answers, similar to what AI company Perplexity plans to do in Q4, partnering with folks like Maria and Nike to sponsor responses in its chatbot, or it could crank up the price on its paid memberships. I'm curious to know what its revenue model looks like, whether it just mirrors the revenue models that we've seen before from search engines. All right, gang.

This would also enable it to test AI chatbot functionality within Facebook, not just in its standalone messaging apps. Our Take: Put messaging on the front burner. The biggest hurdle to creating a super app in the US is that mobile users typically spread out their payments, social media activity, and content consumption across multiple apps.

For now, Shopify and Instacart are using ChatGPT to create shopping assistance chatbots. 滨苍蝉迟补肠补谤迟鈥檚 chatbot will help customers find recipes and ingredients, allowing input of nutrition and dietary restrictions when suggesting shopping items. Shopify鈥檚 chatbot will function similarly.

Over two-thirds (68%) of consumers say that their loyalty to a brand increases when they can communicate with automations like chatbots to resolve issues sooner, per a survey by LivePerson. And 60% of consumers ages 18 to 24 prefer to interact with a chatbot over a human to discover a product.

In June, the company began testing using My AI data to create personalized advertising and has also tested sponsored links and answers in chatbot replies. The service鈥檚 strong growth shows that AI chatbots have been a successful monetization tool for Snap, while others鈥攅ven giants like Microsoft鈥攈ave struggled to make gains with AI.

ChatGPT, a generative AI-powered conversational chatbot developed by OpenAI, is the talk of 2023. In the banking industry, generative AI will help create marketing images and text, answer customer queries via virtual assistants, and produce data that will make machine learning applications more accurate and efficient. Where will generative AI have the biggest impact?

While businesses like Best Buy and Klarna see AI-enabled chatbots as an opportunity to save money on labor without sacrificing service, consumers feel differently.

In a report on generative AI in search, Mitchell-Wolf noted that chatbots provide less ad space than traditional search and similarly lack infrastructure such as adequate impression measurement. Regulators in key markets have also expressed concern about chatbots lacking clarity around when answers are sponsored. The bottom line: 鈥淲e鈥檝e been here before,鈥� Mitchell-Wolf said.

Both Google and Microsoft are experimenting with integrating ads into their respective chatbot experiences. Google鈥檚 CEO Sundar Pichai called the company鈥檚 Search Generative Experience (SGE) 鈥渁 clear quality win,鈥� but search experts still aren鈥檛 sold on SGE鈥檚 effectiveness. Chat-based search could provide users with more conversational, personalized search results.

Chatbots also fill a similar function; that鈥檚 why Snapchat and Discord have both created chatbots that can be toyed with in group chats. Our take: AI offers a chance for Meta to kill two birds with one stone by improving consumer sentiment around artificial intelligence while also increasing time spent on the platform.

Rewind: The startup launched its GPT-4-based chatbot that runs in the background on users鈥� computers to retrieve any data like meetings, tasks, emails, documents, and browser history. We鈥檒l likely see more demand for such personalized chatbots, as well as rising concern about privacy implications.

鈥淟补谤驳别 chatbot platforms will start to have customized versions, tools, and plug-ins that will enhance the [AI] experience in its own way, and they鈥檒l be sold in stores,鈥� Wurmser said. Last month, OpenAI announced a GPT store that will allow developers to build specialized chatbots, and we predict Meta and ByteDance will follow suit with their own versions.

The addition of alternative response options, such as quick-reply buttons to streamline interactions with chatbot-like features powered by RCS. Location-based suggestions guiding users to nearby stores or local deals. Dynamic carousels that can allow users to swipe through various options. Go further: Read about the big Apple Intelligence announcement at WWDC.

Social media companies have already leaned into generative AI, most recently with Meta launching AI chatbots on Instagram. Google is also using generative AI to drive its AI Overviews in Search, with mixed results. Use this chart:. Emphasize the importance of integrating AI into marketing strategies. Highlight opportunities for innovation and investment in generative AI.

Other competitors are launching similar AI tools: TikTok has tested AI-generated music features; X offers access to an AI named Grok; and Snapchat has highlighted its ChatGPT-powered chatbot (which is partially locked behind a Snapchat+ subscription). Our take: Meta will need to prove throughout the year that AI can be a significant driver of user and revenue growth in order to meet investor demands.

The news: Baidu, which is acknowledged as China鈥檚 answer to Google, is sprinting to prepare its AI-powered chatbot, Ernie, but is reportedly struggling to get it to perform basic functions, per The Wall Street Journal. There鈥檚 intensifying pressure for companies in China to match or surpass technologies like popular generative AI.

AI has been a major driver of subscriptions: The company launched a ChatGPT-powered MyAI chatbot on Snapchat last April, with expanded access for Snapchat+ subscribers. AI isn鈥檛 just a subscriber perk鈥攊t鈥檚 also played into Snap鈥檚 advertising business.

In fact, 74% of consumers have interacted with businesses through chatbots, per Verint. But more than half of US Gen Xers, baby boomers, and seniors feel negatively about companies using AI in their CX, according to SurveyMonkey and Momentive, so some may be resistant to AI chatbots. Use this chart:. Understand how customer service expectations vary based on age.

Chatbots are a natural fit for generative AI because of the technology鈥檚 natural language processing capabilities and its ability to answer simple customer questions. 鈥淲hen it comes to customer service, response time and effectiveness of the response are crucial,鈥� said Zhang.