Microsoft Flexes AI Muscles, Announces Enhancements To ChatGPT, Bing, Cloud Services

Microsoft is expanding plug-ins for Bing using a standard supported by OpenAI.

Microsoft announced several new features for its cloud services.

Microsoft has unveiled a series of AI upgrades, including enhancements to ChatGPT, Bing search engine, and cloud services, in an extensive launch aimed at narrowing the gap with Google. One notable change is the integration of live search results from Bing into ChatGPT, the popular chatbot developed by Microsoft's partner, OpenAI. Previously, ChatGPT could only provide information up until 2021. Microsoft plans to enable ChatGPT to utilise Bing web results for both paid and free users.

Furthermore, Microsoft is expanding plug-ins for Bing using a standard supported by OpenAI, Reuters reports. This will enable businesses to engage more seamlessly with consumers on the search engine. For instance, a plug-in could assist a user searching for dinner ideas by providing a suggested recipe and allowing them to order the ingredients directly from Instacart with a single click. Yusuf Mehdi, Microsoft's consumer chief marketing officer, emphasised the transformative impact of these plug-ins on web usage.

Although Microsoft has not yet explored ad placements related to the plug-ins, Mehdi acknowledged that the model for customer acquisition is changing, hinting at potential future opportunities. These updates to Bing are part of Microsoft's strategy to gain a larger share of the global search advertising market, estimated to be worth $286 billion.

Google, Microsoft's main competitor, has also recently demonstrated AI advancements for its search engine, particularly in handling open-ended queries with no clear answers on the web. However, the preference of consumers for these updated search engines remains unclear, as Google's changes have not been widely implemented. Google's chatbot counterpart to ChatGPT, called Bard, already incorporates answers informed by its search results.

When asked whether ChatGPT would replace Bing now that it incorporates up-to-date information from the web, Mehdi clarified that the programs offer different experiences. However, he noted that Microsoft would benefit either way since citations in ChatGPT would drive traffic to Bing.

In addition to the search engine upgrades, Microsoft announced new features for its cloud services. Businesses will be able to create plug-ins that connect to Microsoft 365 Copilot, an AI assistant for enterprises. These plug-ins will allow employees to interact with the AI assistant in plain language to perform tasks such as booking travel or understanding legal issues with vendor contracts.

Moreover, Microsoft disclosed its plan to offer a preview of an AI assistant, or copilot, for some users of its widely-used Windows operating system, starting in June. It also shared its efforts to help consumers determine if an image or video was generated by AI, echoing a similar announcement by Google.