Google’s AI Chatbot Mishap Sparks Investor Caution as China Issues Warnings

Google’s recent demonstration of its artificial intelligence (AI) chatbot service, known as “Bard,” has caused a drop in Alphabet’s shares due to concerns about its accuracy.

Other companies that had recently announced plans to develop similar chatbot services, including Baidu, Zhihu, CloudWalk Technology, Beijing Deep Glint Technology, and Hanwang Technology, also saw declines in their stock prices.

The global tech competition in the AI chatbot space has intensified, with Microsoft and several Chinese firms such as Alibaba and NetEase also jumping on the bandwagon.

However, regulators in China are warning investors about the potential risks, and analysts predict that it will take some time for the real winners to emerge.

Key factors for success include obtaining regulatory approval and successfully monetizing the technology.

The verdict on China’s AI chatbots, including those being developed by Alibaba and NetEase, may only become clear in 2024 as innovation in the technology continues through 2023.