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Why it鈥檚 worth watching: AI chatbots like Anthropic鈥檚 Claude, OpenAI鈥檚 ChatGPT, and Google Gemini are assisting millions of developers in generating computer code, while tools like Cursor鈥攚ith 1 million daily users鈥攁re making AI coding accessible to anyone.

Behind the numbers: While the number of buyers using chatbots as shopping assistants remains modest at best, usage of genAI tools is rising鈥攅ven if shoppers aren鈥檛 always aware of them.

Chatbots and conversational AI (+32%). Why it matters: Healthcare marketers are not only working with smaller budgets, but cited 鈥渄oing more with less鈥� as the number one opportunity. That likely reflects the ongoing move from traditional TV advertising to streaming and targeted TV buying.

Coding finds its tool: 鈥淰ibe coding鈥� enables users with little to no coding experience to ask a generative AI (genAI) chatbot for specific desired software functionality, and the AI tools respond with the necessary code. Engineers from Pinterest and Meta used Cursor for the WriteEdge Side Project, an app that enhances writing productivity.

The news: As generative AI (genAI) tools evolve from chatbots to smarter reasoning models, they seem to be generating more errors with hallucinations鈥攊ncorrect or fabricated outputs. Error rates are as high as 79% in some tests, more than double the error rate of previous models, per The New York Times.

Integrating AI chatbots and virtual assistants for event support requires coordination with existing event platforms like Splash or Zuddl. However, many platforms offer chatbots. Basic chatbot setup is straightforward, but custom flows for event-specific inquiries or deeper integration with event platforms may require additional technical skills.

Messaging over calls: Offer communication through texts, in-app messaging, or chatbots instead of phone calls. Gen Z prefers asynchronous communication that gives them time to think and respond without the pressure of real-time interaction. Enhanced mobile experiences: Ensure banking apps are intuitive and user-friendly with clear options for customer service chats and support tickets.

The news: Meta launched a standalone AI app that houses its chatbot, image-generation tools, and a social Discover feed. The Meta AI app, built on Meta鈥檚 Llama 4, includes Siri-esque voice activation and a document editor. The Discover feed displays interactions others鈥攊ncluding friends from Instagram and Facebook鈥攁re having with Meta AI. Users approve sharing on a prompt-by-prompt basis.

ChatGPT fever has hit social media. Advertisers need to pay close attention, but generative AI social media chatbots still have a lot to prove鈥攁nd challenges to overcome.

Our take: Amazon鈥檚 AI push signals a decisive shift from chatbots to actionable agents. Advertisers should prepare for AI-driven commerce by optimizing for automation, refining customer intent data, and testing agent-compatible workflows.

Consumers want the option to avoid chatbots and go directly to live agents. Section 10: What should digital strategists do next? Dive into our survey data to see customers鈥� most valued features across six categories. Use the study鈥檚 crosstabs to uncover how preferences vary across demographics.

The news: Microsoft 365 Copilot is adding deep research tools to help its product compete in the chatbot market and improve adoption. Two deep-reasoning agents, called Researcher and Analyst, will start rolling out for Copilot licensees in April. On Monday, Copilot will release agent flows that let users dictate if the AI can make its own decisions or work on a rule-based workflow.

And though some financial institutions (FIs) already use AI to help them prevent fraud at ATMs, many believe the technology will also help them tailor financial recommendations and support conversational banking via chatbots.

GenAI chatbot use is on the rise. 鈥淕enAI shopping assistants and chatbots are going to play a much larger role in holiday sales this year,鈥� predicted our analyst Rachel Wolff. AI use will happen whether consumers know it or not. Some 99% of US adults have recently used at least one common AI-enabled product, per Gallup and Telescope. But 64% didn鈥檛 realize they were using AI.

Zooming out: The business connections between X and xAI go deeper than shared ownership鈥攁ll xAI employees are also X employees, per The Verge, and X serves as the main distribution channel for xAI鈥檚 Grok chatbot. 鈥淭his combination will unlock immense potential by blending xAI鈥檚 advanced AI capability and expertise with X鈥檚 massive reach,鈥� Musk said on X.

The search engine has its own version of Google鈥檚 AI Overviews, called Quick Answer, along with an interactive chatbot. Quick Answer can be toggled on or off, letting users decide if or when they want a summary of search results. Meanwhile, Google is piling on AI tools for users, but they aren鈥檛 all welcome and don鈥檛 give control over data usage.

Some early scrutiny: Meta鈥檚 Maverick AI model ranked high on a popular test called LM Arena, which compares large-language models (LLMs) and chatbots, but some researchers flagged a key issue鈥攖he version tested isn鈥檛 the same one developers can use. Meta admitted it used a special 鈥渃hat-optimized鈥� version for the ranking, which behaves differently.

Google likely chose Anthropic due to its AI chatbot Claude鈥檚 superior programming skills鈥攍ast month, Claude 3.7 Sonnet scored 70.3% on a benchmark testing AI鈥檚 real-world software engineering and problem solving abilities. That was far ahead of OpenAI鈥檚 o1 (48.9%) and DeepSeek-R1 (49.2%). It also excels in agentic tasks, per Venture Beat.

Gartner forecasts that traditional search engine volume will drop 25% this year, with market share shifting to chatbots and agents. Younger users are more inclined to use AI tools for search. Nearly 1 in 5 (17.5%) of Gen Zers prefer AI tools over Google, per Pearl, compared with 10.2% of millennials and 8.5% of Gen Xers. Copilot reviews are mostly negative.

Enterprise applications could include bolstering the conversational abilities of customer service chatbots. The model鈥檚 emotional depth could appeal to the 24% of consumers who use generative AI (genAI) for companionship, per Cisco Systems. Will OpenAI pull back? Considering its enormous computing needs, GPT-4.5 may never become available for free users.

While OpenAI leads in the AI market, Perplexity is likely targeting Google because both companies are primarily focused on search, not AI chatbot apps like OpenAI. While OpenAI does have ChatGPT Search, this isn鈥檛 its main product鈥攕o Google Search and its AI Overviews are more of a direct competitor for Perplexity.

Baidu is planning to release an update to its ChatGPT-like chatbot, Ernie, in June. The golden age of AI: OpenAI CEO Sam Altman noted AI model costs drop tenfold annually, boosting accessibility and usage, as seen with companies like DeepSeek, per Business Insider.