Microsoft was one of the first players out of the gate in the current wave of generative and conversational AI. This includes flavors of both of these technologies integrated into Bing, Microsoft Office, and other products across the Microsoft suite. What are drivers and directions?

Key Takeaways

• Technology is one of the biggest drivers of GDP growth says Nojaim.
• And AI is causing the latest inflection in tech-driven value creation.
• Microsoft continues to lean into AI and is integrating the technology in various user touchpoints across its product suite – everything from Bing to Excel.
• Part of this stems from Microsoft’s early and prescient investment in OpenAI. This provides it with an inside track when it comes to AI.
• That, plus Microsoft’s early-mover advantage in the current wave of generative AI, gives the company an edge (excuse the pun) over longstanding competitors like Google.
• This plays out in several ways, most notably, conversational AI that’s infused with Bing (e.g., Bing Chat). This makes it more of an AI-powered co-pilot than a traditional search engine.
• Bringing conversational interfaces into search is also well aligned with broader trends, such as search queries that are getting longer in length.
• Consumers are naturally drawn to conversational interfaces because they align with the ways they think and talk, as opposed to keywords.
• All of the above means that Microsoft is well-positioned and future-proofed for the next era of search. This is already proving out as younger generations are being attracted to, and developing affinities around, the new face of Bing.

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Search Redefined

Not too long ago, ChatGPT and generative AI burst into the scene, quickly becoming household names. Now, several months later, we review how the world of search is undergoing a remarkable transformation with the ascendance of generative AI. And, more importantly, we explore the profound impact this will have on the advertising ecosystem.

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