Despite the potential of AI to transform online search, there are significant challenges, including issues related to bias, misinformation, and copyright infringement. The cost of operating AI systems also makes the unit economics unfeasible for certain tasks. For instance, the cost of a single query on OpenAI’s ChatGPT is estimated to be 1,000 times that of a normal Google search. Nonetheless, the appeal of AI-powered search lies in its ability to provide a more intuitive conversational interface and personalized recommendations.
Key takeaways:
- AI-powered search engine startup Perplexity has grown to 10 million monthly active users and answered over half a billion users queries during 2023, with a recent Series B funding round valuing it at $520 million.
- Perplexity's unique advantage is using AI to provide direct answers, instead of website links, in response to search queries, a model that has raised concerns among news organizations and publishers.
- Despite the rise of AI-powered search engines, Google remains the dominant player in the search market, with a market share ranging from 83% to 91% since 2015.
- Generative AI has the potential to transform the way people find information online, but it also inherits the internet's unsolved issues, including bias, misinformation, and copyright infringement.