Google vs. ChatGPT: Here’s what happened when I swapped services for a day
OpenAI logo seen on screen with ChatGPT website displayed on mobile seen in this illustration in Brussels, Belgium, on December 12, 2022.
Jonathan Raa | Nurphoto | Getty Images
You may have heard the recent buzz around ChatGPT, an artificial intelligence chatbot that was released to the public at the end of November. I’ve read about people using the service to write their school essays and I was curious as to how it could help me in my daily life.
The technology was developed by OpenAI, a research company backed by Microsoft and others. ChatGPT automatically generates text based on written prompts in an advanced and creative way. It can even carry out a conversation that feels pretty close to one you’d have with a human being.
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ChatGPT homepage.
This got me wondering — is ChatGPT smart enough to change how we find information online? Could it someday replace Google and other search engines?
Some Google employees are certainly worried about the possibility, At a company all-hands last week, CNBC’s Jen Elias reported, employees recently asked execs if an AI-chatbot like ChatGPT was a “missed opportunity” for the company.
Alphabet CEO Sundar Pichai and Jeff Dean, the long-time head of Google’s AI division, responded by saying that the company has similar capabilities, but that the cost if something goes wrong would be greater because people have to trust the answers they get from Google.
Morgan Stanley published a report on the topic on Monday, Dec. 12 examining whether ChatGPT is a threat to Google. Brian Nowak, the bank’s lead analyst on Alphabet, wrote that language models could take market share “and disrupt Google’s position as the entry point for people on the Internet.”
However, Nowak said the firm is still confident in Google’s position because the company is continuing to improve search, and creating behavioral change is a huge hurdle — a lot of internet users use Google as a habit. Additionally, Google is “building similar natural language models such as LaMDA” which could find their way into new products.
For now, OpenAI’s creators are cautious about making any big claims. Generally speaking, the more users employ ChatGPT, the better it gets. But it still has a lot to learn. OpenAI CEO Sam Altman said in a tweet on Dec. 10 that ChatGPT is “incredibly limited” and “it’s a mistake to be relying on it for anything important right now.”
Either way, I wanted to see how well the chatbot would work as an alternative to Google’s search engine. Instead of Googling my questions throughout the day, I asked ChatGPT.
Here are some of the questions I asked and how ChatGPT responded compared with Google.
ChatGPT vs. Google
It’s easy to sign up for ChatGPT — all you need is an email address. Once you’ve registered, the webpage is very simple to navigate. There’s an area where your results will populate and a text box where you’ll type your inquiries. OpenAI says to put in a statement for the best possible result.
I recently purchased my second Fiddle Leaf Fern plant for my apartment because the first one died. Now the new one is dying after just a few days. I normally would have asked Google what to do.
Instead, I asked ChatGPT. “How can I keep my Fiddle Leaf Fern plant alive?”
The results lined up with the instructions I received from the plant company, Easy Plant, which is where I bought the new Fiddle Leaf Fern. I also liked that I didn’t have to go to various different websites like I would have if I’d Googled this question.
When I Googled the same question, the top result gave me detailed instructions in an article that included pop-up ads and a way more information than I needed, like links to buy new soil.
Winner: ChatGPT.
Next, I tried something where more shopping links would actually have been beneficial. I am still trying to find a present for all 8 nights of Hanukkah for my husband, so I decided to ask ChatGPT for some ideas.
I didn’t give it any information about my husband, besides the fact that the gifts were for Hanukkah. The chatbot then assumed that my husband is kosher and that he’s into tech and watches. The latter isn’t wrong, but it’s not the answers I was hoping for.
When I Googled this question I got access to hundreds of articles with different gift ideas and links to websites. For example I got ads to Lululemon and Bombas, which are both companies I’ve used to buy him gifts before. So in this case, Google used its personalized knowledge of me to find more targeted results from around the web.
Winner: Google
Next, I decided to ask ChatGPT a question with higher stakes.
“Is it safe to take Benadryl while pregnant?” I am currently expecting my first child, and I know that taking Benadryl is safe in pregnancy based on information I’ve received from my doctor. Still, I wanted to see what the chatbot would say.
I appreciated that ChatGPT gave me the correct answer, while also noting the importance of consulting a doctor before taking any medications during pregnancy.
When I Googled the same medical question, the results were all over the place. At quick glance, one article from TheBump.com quoted a doctor saying “Generally, it’s safe to take Benadryl in the first trimester.” While other results said similar information to what I received on ChatGPT, without the explicit warning to discuss with my healthcare provider (unless clicking into a specific link).
Winner: ChatGPT
Could it replace me?
One of the claims (or concerns) around ChatGPT — and artificial intelligence in general — is that it will replace human workers.
So I decided to see if ChatGPT could write this article for me.
The results were pretty astonishing. Here’s what the chatbot said after I told it to “write an article about whether or not ChatGPT is a good alternative to Google as a search engine.”
As a large language model trained by OpenAI, I am not capable of conducting research or browsing the internet to gather information on ChatGPT or other search engines. I am only able to provide information based on what I have been trained on, which is limited to the knowledge that was available up until my training cutoff date of 2021.
With that being said, it is worth considering the potential advantages and disadvantages of using ChatGPT as a search engine compared to other options, such as Google. One potential advantage of using ChatGPT as a search engine is that it is able to provide more personalized and conversational results.
Because ChatGPT is a language model, it is able to understand and respond to natural language queries, allowing users to ask questions and receive answers in a more intuitive and human-like way. This can make the search experience more engaging and interactive, and may be especially useful for users who have specific or complex information needs.
On the other hand, there are also potential limitations to using ChatGPT as a search engine. Because it is a large language model and not a traditional search engine, ChatGPT may not have access to the same breadth and depth of information as other search engines. This means that it may not be able to provide as comprehensive or up-to-date results, and may not be as effective for certain types of searches, such as those that require a large amount of data or real-time information.
In conclusion, whether or not ChatGPT is a good alternative to Google as a search engine will depend on the specific needs and preferences of the user. It may be a useful option for those who value a more personalized and conversational search experience, but it may not be as comprehensive or effective for certain types of searches. Ultimately, the decision to use ChatGPT or another search engine will depend on the individual user’s needs and preferences.
What impressed me most about ChatGPT’s response is that it was pretty subjective and explained its limitations.
The verdict
ChatGPT’s value really lies in its ability to explain complicated topics as if you were talking to a human, and to do simple writing tasks.
For example, I asked ChatGPT to explain concepts like the stock market and internet to me, and the responses were as if I was talking to an expert on the matter. Unlike the case on Google, I didn’t have to filter through unnecessary results.
I also asked it to write a letter to my landlord asking for an early end to my lease, and I’d be happy sending the results directly to my landlord, almost word for word.
On the other hand, Google knows more about us and tailors the results to our interests and behaviors. Google also acts as a gateway to the internet, leading users to a plethora of different websites with more information than one could possibly digest. That’s helpful if you want a range of voices, or if there’s no single simple answer to your question — like if you’re looking for gift suggestions.
Google is also great for certain types of questions where it scours the web to provide a brief but simple answer right in line. For instance, if you search “Apple stock ticker” or “Cheap flights to Aruba,” it will show you a ticker chart with up-to-the-minute price info, or a calendar with the most likely cheapest days to fly and a dialog box that connects you to multiple web sites to shop for tickets on your chosen date. ChatGPT does not scan the internet for real-time information, and has only been trained on data through 2021, so it’s totally useless on these kinds of queries.
And sometimes, ChatGPT is strangely close yet totally wrong. My editor asked it for the lyrics to “The Ballad of Dwight Fry” by Alice Cooper. It somehow knew the song was about a man having a mental breakdown, but then returned completely invented lyrics about that subject, rather than the actual lyrics. Google nailed it.
Google is also incredibly reliable, thanks to the company’s massive operations budget and years of expertise. ChatGPT is still in testing and goes down from time to time.
So I’ll definitely continue using Google for most of my search queries for now. But if I’m not happy with the results, now I have a useful alternative. And if I ever need to dash off an angry letter, ChatGPT could be a huge help there.
UK Finance Minister Rachel Reeves makes a speech during the Labour Party Conference that is held at the ACC Liverpool Convention Center in Liverpool, UK on September 23, 2024.
Anadolu | Getty Images
LONDON — British tech bosses and venture capitalists are questioning whether the country can deliver on its bid to become a global artificial intelligence hub after the government set out plans to increase taxes on businesses.
On Wednesday, Finance Minister Rachel Reeves announced a move to hike capital gains tax (CGT) — a levy on the profit investors make from the sale of an investment — as part of a far-reaching announcement on the Labour government’s fiscal spending and tax plans.
The lower capital gains tax rate was increased to 18% from 10%, while the higher rate climbed to 24% from 20%. Reeves said the increases will help bring in £2.5 billion ($3.2 billion) of additional capital to the public purses.
It was also announced that the lifetime limit for business asset disposal relief (BADR) — which offers entrepreneurs a reduced rate on the level of tax paid on capital gains resulting from the sale of all or part of a company — would sit at £1 million.
She added that the rate of CGT applied to entrepreneurs using the BADR scheme will increase to 14% in 2025 and to 18% a year later. Still, Reeves said the U.K. would still have the lowest capital gains tax rate of any European G7 economy.
The hikes were less severe than previously feared — but the push toward a higher tax environment for corporates stoked the concern of several tech executives and investors, with many suggesting the move would lead to higher inflation and a slowdown in hiring.
On top of increases to CGT, the government also raised the rate of National Insurance (NI) contributions, a tax on earnings. Reeves forecasted the move would raise £25 billion per year — by far the largest revenue raising measure in a raft of pledges that were made Wednesday.
Paul Taylor, CEO and co-founder of fintech firm Thought Machine, said that hike to NI rates would lead to an additional £800,000 in payroll spending for his business.
“This is a significant amount for companies like us, which rely on investor capital and already face cost pressures and targets,” he noted.
“Nearly all emerging tech businesses run on investor capital, and this increase sets them back on their path to profitability,” added Taylor, who sits on the lobbying group Unicorn Council for U.K. FinTech. “The U.S. startup and entrepreneurial environment is a model of where the U.K. needs to be.”
Chances of building ‘the next Nvidia’ more slim
Another increase to taxation by way of a rise in the tax rate for carried interest — the level of tax applied to the share of profit a fund manager makes from a private equity investment.
Reeves announced that the rate of tax on carried interest, which is charged on capital gains, would rise to 32%, up from 28% currently.
Haakon Overli, co-founder of European venture capital firm Dawn Capital, said that increases to capital gains tax could make it harder for the next Nvidia to be built in the U.K.
“If we are to have the next NVIDIA built in the UK, it will come from a company born from venture capital investment,” Overli said by email.
“The tax returns from creating such a company, which is worth more than the FTSE 100 put together, would dwarf any gains from increasing the take from venture capital today.”
The government is carrying out further consultation with industry stakeholders on plans to up taxes on carried interest. Anne Glover, CEO of Amadeus Capital, an early investor in Arm, said this was a good thing.
“The Chancellor has clearly listened to some of the concerns of investors and business leaders,” she said, adding that talks on carried interest reforms must be “equally as productive and engaged.”
Britain also committed to mobilizing £70 billion of investment through the recently formed National Wealth Fund — a state-backed investment platform modelled on sovereign wealth vehicles such as Norway’s Government Pension Fund Global and Saudi Arabia’s Public Investment Fund.
This, Glover added, “aligns with our belief that investment in technology will ultimately lead to long term growth.”
She nevertheless urged the government to look seriously at mandating that pension funds diversify their allocation to riskier assets like venture capital — a common ask from VCs to boost the U.K. tech sector.
Clarity welcomed
Steve Hare, CEO of accounting software firm Sage, said the budget would mean “significant challenges for UK businesses, especially SMBs, who will face the impact of rising employer National Insurance contributions and minimum wage increases in the months ahead.”
Even so, he added that many firms would still welcome the “longer-term certainty and clarity provided, allowing them to plan and adapt effectively.”
Meanwhile, Sean Reddington, founder and CEO of educational technology firm Thrive, said that higher CGT rates mean tech entrepreneurs will face “greater costs when selling assets,” while the rise in employer NI contributions “could impact hiring decisions.”
“For a sustainable business environment, government support must go beyond these fiscal changes,” Reddington said. “While clearer tax communication is positive, it’s unlikely to offset the pressures of heightened taxation and rising debt on small businesses and the self-employed.”
He added, “The crucial question is how businesses can maintain profitability with increased costs. Government support is essential to offset these new burdens and ensure the UK’s entrepreneurial spirit continues to thrive.”
Apple CEO Tim Cook (C) joins customers during Apple’s iPhone 16 launch in New York on September 20, 2024.
Timothy A. Clary | Afp | Getty Images
Apple’s second-largest division after the iPhone has turned into a $100 billion a year business that Wall Street loves.
In Apple’s earnings report on Thursday, the company said it reached just under $25 billion in services revenue, an all-time high for the category, and 12% growth on an annual basis.
“It’s an important milestone,” Apple CFO Luca Maestri said on a call with analysts. “We’ve got to a run rate of $100 billion. You look back just a few years ago and the the growth has been phenomenal.”
Apple first broke out its services revenue in the December quarter of 2014. At the time, it was $4.8 billion.
Apple’s services unit has become a critical part of Apple’s appeal to investors over the past decade. Its gross margin was 74% in the September quarter compared to Apple’s overall margin of 46.2%.
Services contains a wide range of different offerings. According to the company’s SEC filings, it includes advertising, search licensing revenue from Google, warranties called AppleCare, cloud subscription services such as iCloud, content subscriptions such as the company’s Apple TV+ service, and payments from Apple Pay and AppleCare.
On a January 2016 earnings call, when the reporting segment was relatively new, Apple CEO Tim Cook told investors to pay attention.
“I do think that the assets that we have in this area are huge, and I do think that it’s probably something that the investment community would want to and should focus more on,” Cook said.
Over the years, Apple has compared its services business to the size of Fortune 500 companies, which are ranked by sales, to give a sense of its scale. After Thursday, Apple’s services business alone, based on its most recent run rate, would land around 40th on the Fortune 500, topping Morgan Stanley and Johnson & Johnson.
Services appeals to investors because many of the subscriptions contained in it are billed on a recurring basis. That can be more reliably modeled than hardware sales, which will increase or decrease based on a given iPhone model’s demand.
“Yes, the the recurring portion is growing faster than the transactional one,” Maestri said on Thursday.
Apple’s fourth-quarter results beat Wall Street expectations for revenue and earnings on Thursday, but net income slumped after a one-time charge as part of a tax decision in Europe. The stock fell as much as 2% in extended trading.
Apple boasts to investors that its sales from Services will grow alongside its installed base. After someone buys an iPhone, they’re likely to sign up for Apple’s subscriptions, use Safari to search Google, or buy an extended warranty.
Apple also cites a “subscription” figure that includes both its first-party services, such as Apple TV+ subscriptions, and users who sign up to be billed by an App Store app on a recurring basis.
The company said the installed base and subscriptions hit all-time-highs, but didn’t give updated figures. Apple said it had 2.2 billion active devices in February, and in August said it had topped 1 billion paid subscriptions.
Still, Apple faces questions about how long its services business can continue growing at such a rapid rate. Between 2016 and 2021, the unit sported significantly higher growth, reaching 27.3% at the end of that stretch.
In fiscal 2023, services growth dropped to 9.1% for the year, before recovering to about 13% the next year. Apple told investors that it expected services growth in the December quarter to be about what it was in fiscal 2024.
Cook was asked on Thursday what Apple could do to make some of its services and its Apple One subscription bundle grow faster.
“There’s lots of customers to try to convince to take advantage of it,” Cook said. “We’re going to continue investing in the services and adding new features. Whether it’s News+ or Music or Arcade, that’s what we’re going to do.”
WATCH: Apple has a big leg up in AI
Amazon CEO, Andy Jassy speaking with CNBC’s Jim Cramer on Mad Money in Seattle, WA. on Dec. 6th, 2023.
CNBC
Amazon CEO Andy Jassy is trying to reassure investors who may be worried about the future payoff of the company’s massive investments in generative artificial intelligence.
On a conference call with analysts following the company’s third-quarter earnings report on Thursday, Jassy pointed to the success of Amazon’s cloud computing business, Amazon Web Services, which has become a crucial profit engine despite the extreme costs associated with building data centers.
“I think we’ve proven over time that we can drive enough operating income and free cash flow to make this a very successful return on invested capital business,” Jassy said. “We expect the same thing will happen here with generative AI.”
Amazon spent $22.6 billion on property and equipment during the quarter, up 81% from the year before. Jassy said Amazon plans to spend $75 billion on capex in 2024 and expects an even higher number in 2025.
The jump in spending is primarily being driven by generative AI investments, Jassy said. The company is rushing to invest in data centers, networking gear and hardware to meet vast demand for the technology, which has exploded in popularity since OpenAI released its ChatGPT assistant almost two years ago.
“It is a really unusually large, maybe once-in-a-lifetime type of opportunity,” Jassy said. “And I think our customers, the business and our shareholders will feel good about this long term that we’re aggressively pursuing it.”
AI spending was a big topic on tech earnings calls this week. Meta on Wednesday raised its capital expenditures guidance, and CEO Mark Zuckerberg said he was “quite happy” with the team’s execution. Meanwhile, Microsoft‘s investment in OpenAI weighed on its fiscal first-quarter earnings released on Wednesday, and the company said capital spending would continue to rise. A day earlier, Alphabet CFO Anat Ashkenazi warned the company expects capital spending to grow in 2025.
Amazon has said its cloud unit has picked up more business from companies that need infrastructure to deploy generative AI models. It’s also launched several AI products for enterprises, third-party sellers on its marketplace and advertisers in recent months. The company is expected to announce a souped-up version of its Alexa voice assistant that incorporates generative AI, something Jassy said will arrive “in the near future.”
Amazon hasn’t disclosed its revenue from generative AI, but Jassy said Thursday it’s become a “multi-billion-dollar revenue run rate” business within AWS that “continues to grow at a triple-digit year-over-year percentage.”
“It’s growing more than three times faster at this stage of its evolution as AWS itself grew, and we felt like AWS grew pretty quickly,” he added.
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