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ChatGPT and Generative AI in Search

The Biggest Digital Ad Format Is Ripe for Revolution

Report by Evelyn Mitchell  |  May 15, 2023
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Report
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Table of Contents
Report Snapshot
Google is still dominant, but Microsoft has snatched a first-mover advantage with AI-assisted search.
More users are trying Bing thanks to its GPT-4 integration, but they haven’t made a permanent switch.
It’s yet unclear how the market will support search ads in a conversational interface.
AI-enabled search will likely reduce publisher site traffic, with major consequences for programmatic.
Despite the hype, consumers are dubious about AI-assisted search.
What’s the best course of action for search advertisers?
Insider Intelligence Interviews
Sources
Media Gallery
About This Report
Search is positioned to be generative AI’s first major consumer-facing playground. This is unexplored territory, and advertisers are bracing for big changes.
Topics
Search
United States
Table of Contents
Report Snapshot
Google is still dominant, but Microsoft has snatched a first-mover advantage with AI-assisted search.
More users are trying Bing thanks to its GPT-4 integration, but they haven’t made a permanent switch.
It’s yet unclear how the market will support search ads in a conversational interface.
AI-enabled search will likely reduce publisher site traffic, with major consequences for programmatic.
Despite the hype, consumers are dubious about AI-assisted search.
What’s the best course of action for search advertisers?
Insider Intelligence Interviews
Sources
Media Gallery

Report Snapshot

Microsoft and Google are racing to develop the best AI-assisted search experience, leaving advertisers on the precipice of major disruption in the largest and most mature digital advertising channel. But the only certainty is that disruption is coming, and quickly. Everything else—even the fate of the open web—is up in the air.

Key Question: How might generative AI reshape the search advertising market?

How Much Do US Adults Trust Search Results Generated by AI? (% of respondents, Feb 2023)
E-Mail ChartDownload

KEY STAT: Just over a quarter of US adults trust AI-generated search results, per a February 2023 Ipsos poll. Microsoft and Google need to tread lightly—or risk running afoul of consumers and turning off advertisers.

authors

Evelyn Mitchell

Contributors

Chris Keating
Director, Research
Jennifer Merritt
Vice President, Content
Peter Newman
Senior Forecasting Analyst
Tracy Tang
Senior Researcher
Paul Verna
Principal Analyst
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