Imagine if one person’s mistake could cost a company $100 billion. That’s what happened on Wednesday when Alphabet, the parent company of Google, suffered a loss in excess of $100 billion due to an incorrect answer given by Bard, their AI system.
Google is the largest search engine in the world. It’s known for its accuracy and relevance. On Wednesday, Google suffered a loss of $100 billion because its AI language model Bard made a mistake on its first demonstration.
What is Bard?
Bard is an AI conversational bot that uses deep learning to provide high-quality, original responses. It supports creativity and curiosity by providing new and innovative answers. Bard gets trained with a huge amount of text, which allows it to understand meaning and context. It uses AI and online data to provide a perfect response. Bard AI was created as a response to Google’s Chat GPT.
What is the cause of Google’s $100 billion loss?
Reuters pointed out a mistake in Bard’s response, which led to disappointment at the launch of Google’s AI creation. The error, which was made in a new advertisement on Monday, involved which satellite captured the first images of a world outside Earth’s solar systems. Alphabet’s shares, the parent company of Google, fell by 8%, or $8.59, to $90.05, as a result of this error. It was such a significant impact that it became the most actively traded stock on U.S. exchanges. This incident shows the importance of testing and verifying AI before they are released to the public.
Bard’s mistake had a major impact on Google as a source of reliable information. Users and industry experts criticized the company for its reliance on AI systems, and their potential to harm. The $100 billion loss also had a significant financial impact, in addition to damaging the company’s reputation.
Background
Investors have been paying close attention to artificial intelligence this year, especially since the launch of ChatGPT in November by OpenAI. This has led to the company being valued at $29 billion. Alphabet announced Bard just a day prior to Microsoft’s announcement to highlight its investment in OpenAI. This investment has led to a 20% rise in Microsoft’s share price over the last month. Ives believes that this is just the beginning of AI revolution.
