Google Faces Growing Pains and Criticism as It Plays Catch-Up in Generative AI
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Google's new AI image generator, Gemini, generated inaccurate, offensive, and biased results, leading to a public relations crisis and criticism from prominent figures like Elon Musk.
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This is Google's second recent AI blunder as it plays catch-up to Microsoft and OpenAI in the generative AI space. The missteps have erased nearly $100 billion from Google's market valuation.
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The incidents suggest Google's culture has led it to trail in generative AI, putting its search dominance and valuation at risk.
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Attempts to inject diversity into AI tools can overcorrect and lead to absurd, unrealistic results that draw criticism across the political spectrum.
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Multiple analysts say the struggles with generative AI and search erosion create a "wall of worry" for investors about Google's future prospects.