The news: A company presentation indicates that Google is planning to compete with OpenAI’s ChatGPT.

The tech giant is planning to release over 20 new products and a Search demo using generative AI this year, per Insider.

• The demo would provide search answers, not just related links.
• The news comes in the wake of the Search giant issuing a “code red” about the threat ChatGPT poses to its revenue.
• Google is under increasing pressure given Microsoft’s confirmation that it’ll invest $10 billion in OpenAI and integrate ChatGPT into all its products including Bing.

Why Google needs to act fast: Since its viral debut last year, ChatGPT is on track to rapidly permeate society.

• Close to 30% of nearly 4,500 professionals from companies like Google, Amazon, Meta, Twitter, Bank of America, and JPMorgan have said they’re using ChatGPT or another AI program in their work, according to a Fishbowl survey, per Mint.
• A slew of startups are getting VC funding: Scenario landed $6 million for a generative AI gaming asset creator that can avoid copyright violations.
• Then there’s Irish startup Engage XR, which is powering its interactive virtual employee Athena with ChatGPT and DALL-E.

The case for caution: Google has crucial strategic decisions to make. It has to hit the bullseye on the timing, pricing, and safeguards for its upcoming generative AI products.

• With test users reporting that ChatGPT Professional costs $42 per month, deploying these tools at sufficiently affordable prices could be tricky given the technology’s high compute costs.
• We can expect public pressure for AI chatbot search results to live up to high standards, such as featuring sources and accurate information.
• Beyond still-unresolved copyright infringement issues, generative AI has potential to cause significant adverse consequences for other technologies and society at large. Those could be fodder for other lawsuits that companies like Google want to avoid.