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How does Microsoft plan to make profits after integrating artificial intelligence with the Bing search engine


Microsoft has begun discussing with advertising agencies how it plans to make money from its revamped Bing search engine powered by generative artificial intelligence as the tech company seeks to battle Google's dominance.
An advertising executive who spoke about the meeting on condition of anonymity said, in a meeting with a major ad agency this week, Microsoft showed a demo of the new Bing and said it plans to allow paid links within replies to search results.
Generative AI, which can provide original answers with a human voice in response to open questions or requests, has taken the world by storm recently. Last week, Microsoft and Alphabet announced new AI chatbots every day apart from one another. Users are widely disseminated yet, from aggregating material on the web to complex search queries.
Search results and early conversations with Microsoft's Bing and Google's chatbot called Bard showed they can be unpredictable, and Alphabet lost about $100 billion in market value the day it released a promotional video for Bard that showed the chatbot sharing inaccurate information.
Microsoft expects that more human responses from the Bing AI chatbot will generate more users for its search function and thus more advertisers. Ads in the Bing chatbot may also have more on-page importance compared to traditional search ads.
Microsoft is already testing ads in its first version of its Bing chatbot, which is available to a limited number of users, according to an ad executive and ads seen by Reuters this week.
The company said it is taking traditional search advertising, where brands pay to have their websites or products appear in search results for keywords related to their business, and including them in responses generated by a Bing chatbot, the advertising executive said.