Since the launch of ChatGPT in November 2022, artificial intelligence (AI) has been the talk of Wall Street. More specifically, both retail and institutional investors have been highly focused on chatbots and the companies building their own.
Many eyes were on Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) earlier this month as Google geared up for the launch of its Bard chatbot. But when the highly anticipated AI product made its debut on Twitter, it displayed clear misinformation, sending shockwaves through the tech market and pushing GOOGL stock down in the process.
Bard is an experimental conversational AI service, powered by LaMDA. Built using our large language models and drawing on information from the web, it’s a launchpad for curiosity and can help simplify complex topics → https://t.co/fSp531xKy3 pic.twitter.com/JecHXVmt8l
— Google (@Google) February 6, 2023
Since then, Google insiders have speculated that the launch may have been premature. Its engineers are working to correct the mistake, but while they do, GOOGL shares have been struggling to stay in the green. However, this doesn’t mean that investors seeking AI stocks should count Google out. On the contrary, the company has demonstrated some impressive progress, reminding everyone what this new technology can do.
Let’s take a closer look at the Google Bard launch and how investors should be assessing it.
A Google Chatbot in a ChatGPT World
They say timing is everything, and Google didn’t get the timing of its Bard launch correct. With the media outcry following the premature debut, it’s easy to see why investor confidence is compromised. But even as Google scrambles to pick up the pieces, its progress on the AI front is noteworthy. And investors should be evaluating it from a macro perspective rather than dismissing it because of one error.
Most important to remember is that Google’s AI is bigger than Bard. The company is doubling down on this new technology, and it plans on using it to redefine how we search for things. In a recent blog post, Google laid out the ways it plans on leveraging AI to help improve the search experience for users, specifically while traveling. Already in motion, these new initiatives center around allowing mobile users to conduct web searches via their phone’s camera. As the company states:
“In the coming months, you’ll be able to use Lens to ‘search your screen’ on Android globally. With this technology, you can search what you see in photos or videos across the websites and apps you know and love, like messaging and video apps — without having to leave the app or experience.”
Google is also introducing a multisearch tool, allowing users to search with both text and images. This enables users to find better information by asking questions about what they see. The company is also looking into enhancing this exciting feature even further by way of a Multitask Unified Model (MUM), which it has been working on since 2021. All the AI hype is focused on chatbots now. But Google clearly sees that the future is much broader than a digital question-and-answer tool like ChatGPT.
What’s Next for GOOGL Stock
There is no need for investors to worry about Alphabet stock following the Bard launch. Contrary to what some experts have speculated, devices like ChatGPT do not pose a significant threat to Google. The company has been highly focused on AI for years, and it has the resources to stay ahead of competitors as it has nearly always done. Even as Bard experiences setbacks, Google is finding new ways to use AI to continue delivering the tools its users want.
One Seeking Alpha contributor recently argued that Google’s AI tools are “3x larger than ChatGPT” and that GOOGL stock remains undervalued. In their words:
“Google has been a pioneer in the AI space for decades and when it comes to search engine integration I believe the company has an edge. The advertising market is going through a cyclical downturn right now and its PaLM model ‘mistake’ was definitely overblown.”
Everything that we’ve seen from Google regarding its search AI plans suggests that it absolutely has an edge over competitors. Investors should focus on the value that the company can derive from its AI tool. The Bard launch is a small setback that will quickly pass, allowing shares to rise again.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
