Introduction
In the highly competitive world of search engines, Google has long reigned supreme, leaving other players like Bing struggling to gain market share. Despite Microsoft’s efforts to incorporate generative AI into its search engine Bing, the search giant has failed to make a significant dent in Google’s dominance. This article delves into the reasons behind Bing’s inability to leverage AI technology to gain traction in the search market. We will explore the strategic missteps and challenges faced by Microsoft, the entrenched position of Google, and the potential impact of ongoing antitrust trials on the search engine landscape.
Bing’s Declining Market Share
According to market tracker StatCounter, Google’s market share of search in the United States increased from 86.75% in October 2022 to 88.1% in October 2023. In contrast, Bing’s market share dropped from 7.4% to 6.92% during the same period. Even worldwide, Google’s dominance is evident, with a search share of 91.55% compared to Bing’s 3.11%. Bing’s share of worldwide desktop searches, although better at 9.14%, has also experienced a decline from 9.92% in 2022. In the realm of mobile searches, where Google holds a commanding 94.93% position, Bing ranks fourth with just 0.53% market share.
Microsoft’s Strategic Misstep in AI Deployment
When Microsoft introduced AI into Bing, there was hope that it would give the search engine an edge over Google. However, a deployment decision by Microsoft may have hindered its ability to convert its early AI advantage into a larger share of the search market. Bing with ChatGPT was initially only available through the Edge browser, a move intended to drive downloads of Edge. However, this limited availability across browsers proved to be a setback for Microsoft. Additionally, users have become habituated to Google, underestimating the power of inertia and habit when it comes to search engine usage.
Mark N. Vena, president and principal analyst at SmartTech Research, highlights that despite advancements in AI algorithms, Bing still struggles to compete with Google’s entrenched dominance. Users perceive Google’s search results as more accurate and pertinent, making it challenging for Microsoft to attract and retain a significant user base. The search engine arena is fiercely contested, and Google’s established user habits make it difficult for Bing’s AI enhancements to drive a notable shift in market share.
Google’s Dominance as an Entrenched Search Engine Vendor
Google’s position as an entrenched vendor presents a significant challenge for competitors like Bing. People are accustomed to using Google and have developed habits around its search engine. Displacing an entrenched vendor requires significant marketing efforts and convincing users that the tool they are currently using is not good enough. Rob Enderle, president and principal analyst at the Enderle Group, emphasizes the need to not only demonstrate that a new search engine is better but also to make users dissatisfied with their current tool. This task becomes even more challenging when it comes to AI, as it requires users to adapt to a new application and embrace the use of AI technology.
Enderle points out that Bing’s AI implementation fell short of users’ expectations. Microsoft needed to go further with generative AI, enabling users to ask questions verbally and receive curated responses. However, this functionality was not fully realized, resulting in fewer users gravitating towards Bing’s AI-powered search. The gap between where Bing needs to be to pull market share from Google and where it currently stands is significant. Microsoft faces the formidable task of altering user preferences in the face of Google’s search supremacy.
Antitrust Trials and Their Impact on Google’s Dominance
While AI may not be the solution to Google’s search dominance, ongoing antitrust trials are challenging the search leader’s alleged monopolistic practices. In San Francisco, Epic Games, the studio behind Fortnite, has filed a lawsuit against Google for antitrust issues related to in-game payment processing on the Google Play platform. The case alleges that Google has created an illegal monopoly on Android apps, primarily to boost its profits through commissions. Additionally, the U.S. Department of Justice and Google are engaged in a courtroom battle over alleged antitrust violations by the search giant.
The outcome of these antitrust trials could potentially affect Google’s search supremacy. If the default search relationships are ended, it may not have a material impact on Google’s usage. Users are likely to continue using Google as their preferred search engine. However, the advertising side of Google’s business could face more significant repercussions. The court’s decision on remedies for Google’s monopolistic practices will determine if there will be any change in the status quo.
