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Microsoft is reportedly working on a version of its flagship Bing search engine that will be powered by OpenAI’s recently released ChatGPT conversational artificial intelligence software as part of its latest effort to take on Google’s long-standing monopoly.

According to two sources who spoke to The Information and who are familiar with Microsoft’s plans, the company headed by Satya Nadella could release the new AI-powered Bing before the end of the first quarter of 2023.

If successful, Microsoft could soon see the upside of its $1 billion investment in OpenAI from 2019 when the two companies partnered so the former could use the latter’s Azure cloud-computing platform to develop powerful AI technology.

What is ChatGPT and How Could it Help Bing?

ChatGPT has been making the headlines lately as the AI-powered chatbot can produce highly sophisticated answers to the most complex questions.

Reporters from The Information surveyed the software to determine how a ChatGPT-powered version of Bing could improve user experience. The first answer was quite insightful as the ChatGPT bot indicated that Bing’s algorithm could enhance its understanding of “the context and intent of a user’s search query, and provide more relevant and accurate results”.

Even though ChatGPT is not built to be used as a search engine, it can be combined with Microsoft’s existing technologies to come up with better search results that may eventually allow the company to compete with Alphabet’s flagship product.

Google (GOOG) currently dominates the search engine market with a market share of over 90% globally. The firm’s primary source of revenue is advertising as they allow companies to make their websites stand out among other search results related to a handful of hand-picked keywords.

Advertisers have to bid to be ranked among the first websites and this is how the business increases its income. Companies such as Microsoft and Yahoo have attempted to take on Google’s monopoly but have failed thus far.

One strategy that has paid off big for Google is having their search engine pre-installed and set as the default option for users within any Android-powered device. Considering that Android dominates the market for mobile operating systems with a market share of over 43%, this has gained the company an invaluable edge against its rivals.

The Microsoft-OpenAI Ties Are Deepening

This is not the first initiative from the Redmond-based tech company to integrate OpenAI’s products with its suite of web services. For example, in October last year, Microsoft said that it will be incorporating the AI-powered image generation service called Dall-E 2 with its Microsoft Azure platform so designers can use the software to generate custom drawings by using a combination of image and text.

Rather than replacing product developers and designers altogether, Microsoft (MSFT) aims to help them by creating tools that can rapidly generate a large number of prototypical images that can show these talented individuals versions of their designs that they may have missed.

After testing the technology, a Mattel product executive told Microsoft that the software prompted designers to say thinks like ‘Oh, I didn’t think about that!’, as the AI-powered software showed them a bulk-load of prototypical drawings that came out of the original sketch.

Microsoft is also aiming to make all of its software better by introducing an AI-powered virtual assistant that can create applications for whatever the user needs. This is now becoming a real possibility through the use of ChatGPT’s conversational software.

For example, users could tell the assistant that they want to put any messages they receive from their bosses in writing by sending a transcript to their e-mails once they get it. The AI-powered software would come up with the required workflow to make this happen by relying on the tools that Microsoft has made available such as the Teams app and the Outlook e-mail solution.

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