"The large, slow incumbent - in this case, Google - was caught flat-footed by a more nimble upstart by the name of OpenAI. It was the type of story Silicon Valley built its legend on. In Sundar Pichai's first letter to shareholders in 2016 after becoming CEO, he said Google would shift to an "AI-first world." Yet, in late 2022, a relatively unknown company suddenly pulled the rug from under Google's feet."
"In the years since, the search giant has acted fast to turn things around. It quickly reshaped key parts of its business internally and made an aggressive push to inject generative AI into its core products. Its latest AI model, Gemini 3, launched this month to dazzling reviews. Crucially, Gemini 3 launched within Search - Google's most prized business - on day one, a strong signal that after three years the company had gotten its ducks in a row."
"However, there are big questions that Google is still grappling with as it rebuilds its image in the age of AI. OpenAI's first-mover advantage meant that ChatGPT has become the "Kleenex" of AI - the name that everyone associates with it - and it will be tough for Google to change that."
Google declared an 'AI-first' shift in 2016 but was surprised by ChatGPT's rapid rise in late 2022, exposing a gap between ambition and execution. The company reorganized and accelerated generative AI integration across core products. Gemini 3 received strong reviews and was embedded in Search on day one, indicating strategic alignment. OpenAI's first-mover advantage has made ChatGPT the familiar name for conversational AI, creating branding and competitive hurdles. Google is reimagining search as a conversational, click-reducing experience while confronting questions about preserving a healthy web ecosystem and the future of internet navigation.
Read at Business Insider
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