Google, the world’s largest and most powerful tech company, suffered a significant financial blow after its latest artificial intelligence (AI) tool, Bard, made a rather public mistake. Reports suggest that Alphabet Inc., Google’s parent company, had a whopping $100 billion/£82.7bn wiped off their share value in the blink of an eye – all thanks to one simple error.
Bard is a relatively new AI program designed by Google as an alternative to ChatGPT. It uses machine learning to understand posts from users on Reddit and provide appropriate responses based on context. Google had high hopes for the application, expecting it to become a popular and useful tool in Reddit’s community.
Google’s AI tool, Bard, is designed to be an advanced search engine and virtual assistant in one. It claims to have the capability of providing users with accurate answers within seconds – it should come as no surprise then that Google has already had some success with their new product since its launch in February 2021. However, all of this seemed to unravel recently when Bard made a rather embarrassing mistake – one that cost Alphabet Inc. $100 billion/ £82.7bn in lost share value.
The controversial incident occurred during an earnings call on April 29th 2021 when Google CEO Sundar Pichai asked Bard for “updated performance metrics”. Unfortunately, Bard misunderstood the question and gave incorrect results that were shared with hundreds of analysts and investors – highlighting a potential flaw in its design. After realizing its error, Google was forced to retract the information and apologize for any inconvenience caused.
As previously mentioned, the mistake made by Bard had disastrous consequences for Alphabet Inc., leading to an immediate drop in share value of $100 billion/ £82.7bn – wiping out almost all of its gains from earlier in the year. Furthermore, questions are now being asked as to whether or not Google’s AI technology is fit for purpose – potentially undermining their entire project going forward.
Firstly, it is clear that AI technology is still in its early stages and should be approached with caution. While Google’s mistake might have been an embarrassing one, the consequences are certainly not unique – many companies have suffered financially after relying too heavily on such technology. Secondly, it serves as a reminder to double-check all of our data before sharing it publicly, especially when making decisions that involve large sums of money or significant resources.
Google’s $100 billion bungle highlights some of the potential risks associated with artificial intelligence technology. Despite being designed for accuracy and efficiency, errors can still occur – something which Alphabet Inc. has learnt first-hand with this incident. Going forward, it is important that we continue to approach AI technology with caution and ensure that accurate data is double-checked before it is shared publicly. Only then will companies like Google be able to avoid costly mistakes in the future.
Google has since reacted swiftly, taking action to fix the problem and apologising for Bard’s error. They have also stated their commitment to AI safety and explained that this incident highlights the need for better regulation around AI technology.
Although Google has taken steps to recover from this mistake, investors may take some time to regain confidence in the company and its products. Many are speculating that Alphabet Inc.’s share value may not fully recover until the public trust in Bard is restored.
AI technology is rapidly advancing, but it’s clear that there is still a lot of work to be done when it comes to ensuring AI safety and reliability. Google’s $100 billion/£82.7bn bungle serves as a stark reminder of just how much damage an AI error can cause – both financially and reputationally. It will certainly be interesting to see how Google responds and if they can rebuild their investors’ trust in their products.
