As bots become more prevalent, financial markets are starting to take notice. Major tech companies started an AI-bots race, causing stock prices to rise. However, it needs to be clarified if these investments will be profitable. Last week, Google’s stock price fell by 10%, while Microsoft’s rose by 10%.
Ai Bots Are Gaining Value In The Tech Markets
The AI-bots race is on. Financial markets are trying to adapt to this. Over the past several days, almost all companies that have something to do with AI or announced that they are working on their bots are gaining value. These value increases, however, are in reserve. At the moment, it is difficult to say whether these ideas will be profitable. And that’s how much and when.
Last week, the NASDAQ index (NDX100) fell by 2.4%, while the shares of Microsoft (MSFT. US) jumped by 1.8%. Microsoft recently bought ChatGPT – AI, which has recently become a global sensation. How big? It’s enough to say that ChatGPT gained over a million users in just 5 days from its launch on November 30, 2022.
Google’s Bard Embarrassed Company. Stocks Down
In turn, shares of Google (GOOG.US) fell over the last week by nearly 10%. The trend was, therefore, completely reversed for the entire technology companies market. Why did this happen? It was related, of course, to the current AI fever.
Google quite suddenly, literally overnight, showed the world its version of the chatbot called Bard (so he had to work on it before). Unfortunately for the Mountain View-based company, it turned out to be a marketing embarrassment, as it quickly became clear that it was making many mistakes. To make matters worse, evidence of these mistakes was recorded in the advertising presentation. Effect? Google shares between Tuesday and Thursday (February 9-11) lost 15% and ended the week at -10%.
The AI-Bots Race Has Begun
Although the forecasts regarding artificial intelligence are optimistic, its application from the point of view of financial benefits for their publishers and owners still needs to be clearly defined.
For now, playing with artificial intelligence is mainly conducted by content creators, SEO specialists, and search engines. Microsoft has combined its Bing search engine capabilities with the GPT chatbot’s capabilities. Its AI-powered Bing isn’t widely available yet, but building it alone has boosted Microsoft’s share price by nearly 10%.
This is just the beginning of this AI-bots race, and so far, Microsoft (ChatGPT), Google (Bard), and Baidu (ERNIE Bot) have stood in the competition. Even Goldman Sachs is trying to create a bot that can trade stocks. However, we don’t know if these ideas will be profitable at this stage. Further episodes of this series can be extremely interesting and exciting for investors.