Observed Signal · Feb 8, 2023 · Product Launch · Source: Trending Topics · Impact: 4/5 · Sentiment: Positive
Microsoft to Use ChatGPT Bing Data for Personalized Ads
Microsoft has integrated OpenAI's ChatGPT and GPT-3 technologies into its Bing search engine and Edge browser, giving the company access to conversational AI data that it plans to use for personalized advertising. Microsoft's advertising chief Rob Wilk said the AI-powered search experience will provide deeper insights into user intent and improve advertiser ROI. The company aims to double its digital ad revenue from $10 billion to $20 billion annually. Microsoft's terms of use note that AI chat interactions may be manually reviewed by employees or partner companies. The article also highlights the cost pressure behind the move: OpenAI reportedly costs about $1 million per day for ten million users, and Microsoft as cloud partner has an interest in refinancing these costs through advertising.
Major platform Microsoft embedding AI into search creates new ad inventory and targeting capabilities, potentially reshaping search advertising and intensifying competition with Google.
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Key Takeaways & Evidence Grounding
- Microsoft integrated OpenAI's ChatGPT and GPT-3 into its Bing search engine and Edge browser.
- Microsoft's advertising chief Rob Wilk stated that AI-powered search would improve advertiser ROI and provide deeper targeting data.
- Microsoft aims to double its digital advertising revenue from $10 billion to $20 billion per year.
- Microsoft's terms of use state that AI chat interactions may be manually reviewed by employees or partner companies.
- OpenAI's operating costs were estimated at about $1 million per day for ten million users.
Connected Companies & Entities
6 Entities mapped“Microsoft-CEO Satya Nadella bei der Präsentation. © Microsoft...”
“With the new integration of AI technologies from the startup OpenAI in the search engine Bing and the browser Edge, the software giant is al...”
“While the Alphabet group earns about 90% from Google and YouTube advertising ($250+ billion per year), Microsoft’s digital advertising busin...”
“While the Alphabet group earns about 90% from Google and YouTube advertising ($250+ billion per year), Microsoft’s digital advertising busin...”
“Brand names are already appearing in the first chats, such as the furniture store Ikea or the car manufacturer Honda....”
“Brand names are already appearing in the first chats, such as the furniture store Ikea or the car manufacturer Honda....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
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Microsoft Xbox creates new division for films, series, parks
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Outlook to Block MSIX Files as Email Attachments
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