Microsoft Plans To Sell AI Ads, Take Market Share From Google

Key Insights

• A Reuters report indicated that Microsoft plans to sell ads in its new, AI-powered Bing search engine. 
• Discussions with ad agencies have already began. 
• Google risks losing market share if Microsoft succeeds in its efforts. 

Microsoft Prepares To Make Money From Its Bing Search Engine

According to a recent Reuters report, Microsoft has already began to discuss how it would sell ads in its AI-powered Bing search.

The tech giant bets that usage of its Bing AI chatbot would grow at a robust pace, and that the company would be able to start selling ads in the near term.

Currently, Microsoft’s Edge browser has a market share of less than 5%. The company’s browser uses the Bing search engine. Most users use the browser for search instead of going to the search engine’s web page.

Reuters has also reported that Microsoft did not provide a timeline for when the brands would be able to buy ads within the chatbot. However, it is obvious that the company will try to reveal this feature in the upcoming months.

Google Risks Losing Market Share

Google’s dominant position in search is at risk in case Microsoft’s chatbot wins competiton against Google’s Bard.

The disappointing presentation of Bard has recently put significant pressure on the stock of Google’s parent company, Alphabet. Today, Alphabet is down by about 2%, although this weakness is not related to Microsoft’s moves on the AI front. Tech stocks, including Alphabet and Microsoft, are losing ground amid worries about rising rates.

Most analysts believe that AI chatbots will change the way people search for things. For Microsoft, it’s a unique chance to take the market share from Google. There is no doubt that AI chatbot story will remain the key catalyst for Microsoft and Alphabet stocks in the near term.

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