Google's Gemini Model Surpasses ChatGPT in Commercial Activities

Google's Gemini large-language model is outperforming OpenAI's ChatGPT in commercial activities, with 38% of users utilizing it for price comparison and 36% for shopping. Gemini's adoption has grown 1,000% in seven months, narrowing the gap with ChatGPT's 30% user base.

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Nitish Verma
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Google's Gemini Model Surpasses ChatGPT in Commercial Activities

Google's Gemini Model Surpasses ChatGPT in Commercial Activities

Google's large-language model Gemini is outperforming OpenAI's ChatGPT in commercially focused activities, according to a recent analysis by Morgan Stanley. Gemini is leveraging Google's leading position in various consumer funnels, such as e-commerce, travel, financials, and healthcare, as well as its existing platforms like Search and YouTube.

Why this matters: The competition between large-language models has significant implications for the future of online commerce and advertising, as the model that dominates commercial activities could reap substantial revenue benefits. As these models continue to evolve, their impact on the digital economy and consumer behavior will be increasingly important to monitor.

The analysis reveals that 38% of Gemini users utilize the model for price comparison, while 36% use it for shopping. In contrast, only 27% of ChatGPT users engage in price comparison, and 23% use it for shopping. This suggests that Gemini is more effective in assisting users with commercial tasks compared to ChatGPT.

Morgan Stanley's internet research team, led by equity analyst Brian Nowak, notes that Gemini's commercial-related activity is stronger and rising. "In our view, it is important to monitor changes in commercial offerings and behaviours on these products in order to gauge the long-term advertising/commerce monetisation potential," said the bank.

While ChatGPT remains the leading large-language model for research and information discovery, Gemini is catching up in terms of adoption. Currently, 30% of survey respondents use ChatGPT, compared to 26% using Gemini. However, the gap is narrowing, and Gemini's growth rate is significantly higher. Gemini adoption has grown 1,000% in the past seven months, while ChatGPT adoption has risen 350%.

OpenAI is expected to announce updates to its latest ChatGPT 4 offering, with CEO Sam Altman describing the new features as "magic." However, Altman has ruled out a search function to rival Google Search for now. Morgan Stanley believes that new incremental product offerings and sources of consumer utility will be crucial to driving broader adoption of these large-language models.

As the competition between large-language models intensifies, Google's Gemini is emerging as a strong contender in the commercial sphere. With its impressive growth and focus on consumer-centric activities, Gemini has the potential to become a superior money spinner compared to ChatGPT. The analysis by Morgan Stanley underscores the importance of monitoring the evolving capabilities and applications of these AI models to gauge their long-term monetization potential.

Key Takeaways

  • Google's Gemini outperforms ChatGPT in commercial activities.
  • Gemini leads in price comparison (38%) and shopping (36%) tasks.
  • Gemini's commercial activity is stronger and rising, says Morgan Stanley.
  • Gemini's adoption grows 1,000% in 7 months, outpacing ChatGPT's 350%.
  • Gemini's focus on consumer-centric activities may drive long-term monetization.