Alphabet Inc. shares took a dive on Tuesday after its new AI chatbot, Bard, made an inaccurate response during a public demonstration.
Bard is Alphabet’s answer to its rival, ChatGPT, and was revealed during a live demonstration on Monday. However, during the demo, Bard gave an incorrect response to a question, sending Alphabet’s stock down by more than 1%.
The demonstration was part of a new ad campaign for Bard, which promised to provide users with “accurate information and insights” about the company.
The error was a major setback for Alphabet, which had been hoping that Bard could help it compete with ChatGPT. Analysts say that the mistake could be a sign of a larger issue with the technology.
“This is a major problem for Alphabet,” said one analyst. “If their AI chatbot can’t even get basic questions right, it’s going to be hard for them to compete with ChatGPT.”
Despite the error, Alphabet is still confident that Bard can be a success.
“We remain committed to developing the best AI technology and are confident that Bard can provide accurate information and insights to our users,” said an Alphabet spokesperson.
For now, Alphabet will have to wait and see if Bard can recover from its initial misstep and compete with ChatGPT.