How Google’s faulty AI chatbot affects the advertising industry?

Google, the world’s leading search engine and online advertising platform, has faced a major setback with its latest AI chatbot, Gemini, which malfunctioned and gave inaccurate answers to users’ queries. This incident has raised concerns among advertisers and ad tech companies, which rely on Google’s AI tools for their marketing campaigns and operations.

What is Gemini, and what went wrong?

Gemini is an AI chatbot that Google launched in 2023 as part of its efforts to improve its conversational AI capabilities and compete with other platforms such as ChatGPT, which is developed by OpenAI. Gemini is designed to answer users’ questions in natural language, using Google’s vast knowledge base and advanced AI models. Gemini is also integrated with Google’s advertising products, such as Google Ads and Google Marketing Platform, to provide personalized and relevant ads to users based on their queries and preferences.

However, earlier this month, Google had to take Gemini offline for repairs after it was discovered that the chatbot was giving wrong and misleading answers to some questions. For example, in a Google advertisement, Gemini was asked about the launch date of the James Webb space telescope, and it replied that it was in 2021, when in fact it was scheduled for 2024. Google apologized for the error and said that it was working to fix the issue as soon as possible.

Why does this matter for advertisers and ad tech?

Google’s rogue AI chatbot has implications for the advertising industry, as it affects the trust and reliability of Google’s AI tools, which are widely used by advertisers and ad tech companies for their marketing campaigns and operations. Google’s AI tools help advertisers and ad tech companies to:

• Create and optimize ads: Google’s AI tools help advertisers create and optimize ads based on users’ interests, behaviors, and contexts. For example, Google Ads uses AI to generate ad copy, headlines, and images and optimize bids, budgets, and targeting. The Google Marketing Platform uses AI to measure and improve the performance and impact of ads across different channels and platforms.
• Reach and engage users: Google’s AI tools help advertisers reach and engage users with relevant and personalized ads based on their queries and preferences. For example, Gemini uses AI to answer users’ questions and provide ads matching their intents and needs. Google Discover uses AI to curate and recommend content and ads that users might be interested in based on their browsing history and interests.
• Analyze and understand users: Google’s AI tools help advertisers analyze and understand users’ behavior, feedback, and sentiment using data and insights from Google’s platforms and services. For example, Google Analytics uses AI to provide insights and recommendations on how to improve the user experience and conversions. Google Surveys uses AI to collect and analyze user feedback and opinions on various topics and products.

If Google’s AI tools are faulty or inaccurate, it could affect the quality and effectiveness of the ads and the user experience, as well as the reputation and credibility of the advertisers and ad tech companies. It could also lead to wasted ad spend, lost revenue, and lower customer satisfaction and loyalty.

How are advertisers and ad tech companies reacting?

Advertisers and ad tech companies are worried about Google’s rogue AI chatbot, as it could damage their relationship with Google and their customers. Some of the reactions are:

• Seeking alternatives: Some advertisers and ad tech companies are looking for alternatives to Google’s AI tools, such as ChatGPT, which is considered to be more advanced and reliable than Gemini. ChatGPT is an AI chatbot that can answer users’ questions in natural language, using a large and diverse dataset and a powerful AI model. ChatGPT is also integrated with various advertising platforms, such as Facebook, Twitter, and Reddit, to provide users with relevant and engaging ads.
• Demanding transparency: Some advertisers and ad tech companies are demanding more transparency from Google, such as how it develops, tests, and monitors its AI tools and how it handles and reports errors and issues. They also want more control and visibility over how their ads are created, delivered, and measured by Google’s AI tools, and how their data and privacy are protected and respected by Google.
• Adopting best practices: Some advertisers and ad tech companies are adopting best practices to ensure the quality and accuracy of their ads and the user experience, such as verifying and validating the information and answers provided by Google’s AI tools, using multiple sources and methods to cross-check and confirm the facts and data, and providing feedback and suggestions to Google to improve its AI tools and services.

What are the implications and challenges for the future?

Google’s rogue AI chatbot is a wake-up call for the advertising industry, as it shows the potential risks and challenges of relying on AI tools for marketing and advertising. Some of the implications and challenges for the future are:

• Ethical and social issues: AI tools pose ethical and social issues, such as bias, discrimination, misinformation, manipulation, and privacy. For example, AI tools could generate or promote ads that are biased, discriminatory, misleading, or harmful to certain groups or individuals, or that violate their privacy and consent. Advertisers and ad tech companies need to ensure that their AI tools are fair, accurate, and respectful and that they adhere to the ethical and legal standards and regulations of the industry and society.
• Technical and operational issues: AI tools pose technical and operational issues, such as complexity, reliability, and security. For example, AI tools could malfunction, break down, or be hacked, resulting in errors, glitches, or breaches that could affect the quality and safety of the ads and the user experience. Advertisers and ad tech companies need to ensure that their AI tools are robust, reliable, and secure and that they have the necessary skills, resources, and processes to develop, maintain, and update their AI tools.
• Competitive and strategic issues: AI tools pose competitive and strategic issues, such as innovation, differentiation, and collaboration. For example, AI tools could create or enhance the competitive advantage or disadvantage of advertisers and ad tech companies, depending on their level of innovation, differentiation, and collaboration with other players in the industry and the market. Advertisers and ad tech companies need to ensure that their AI tools are innovative, differentiated, and collaborative and that they align with their goals, values, and vision.

Google’s rogue AI chatbot is a reminder that AI tools are not perfect and that they require constant monitoring, evaluation, and improvement. Advertisers and ad tech companies need to be aware of the benefits and risks of using AI tools and to adopt best practices and standards to ensure the quality and integrity of their ads and the user experience.