‘AI First’ To Last: How Google Fell Behind In The AI Boom

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With Bard, its newly launched 'experimental conversational AI service,' Google’s scrambling to ship AI products. But past scandals, botched launches and a talent drain have put it in a surprise position: playing catch-up in a field it helped create.

Now all but one of the paper’s eight coauthors have left. Six have started their own companies, and one has joined OpenAI. Aidan Gomez, one of the paper’s authors and CEO of AI rival Cohere, said Google’s environment was too rigid for him. “It is a matter of the freedom to explore inside a huge corporation like Google,” he told. “You can’t really freely do that product innovation. Fundamentally, the structure does not support it. And so you have to go build it yourself.

just two months after its $23 billion IPO. Its ascension and Yahoo's decline was widely viewed as a case study in the Innovator's Dilemma, a theory that posits big companies often lose their market advantage by favoring widely-used existing products over new and developing technologies that might someday replace them. Almost two decades later, Google seems to be facing a similar scenario.

In addition to Bard, Google said this week that it will also be infusing more AI into its search engine. Google will use the technology to answer complex queries and distill them into one blurb of information. In one example Google cited, the AI conjures up a detailed answer to whether it's easier to learn the guitar or piano.

Some venture capitalists think Google is poised to make a big splash. The company has too much institutional history in AI to just roll over, said Lonne Jaffe, managing director at Insight Partners. “This is what they've been working on for the last 15 years,” he said. “Just being first isn’t enough. Microsoft knows this better than anybody else,” said Nicolai Wadstrom, founder of BootstrapLabs. “It’s about how you find utility value that can be scalable, and Google is very focused on that.

 

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