Google share price plummets 8% after faulty AI chatbot Bard unveiling

On Monday, Google's false advertisement went live. Alphabet, the parent company of the business, fell 8 percent, or $8.59, to $99.05, making it one of the most traded stocks on U.S. exchanges.

The tech conglomerate shared a brief GIF video of Bard in action on Twitter, describing the chatbot as a "launchpad for curiosity" that would simplify complex subjects. However, just hours prior to the Bard launch event in Paris, the video provided an incorrect response.

Dennis Dick, founder and market structure analyst at Triple D Trading, stated, "This is a hiccup here and they're severely punishing the stock for it, which is justified because obviously everybody is pretty excited to see what Google's going to counter with Microsoft coming out with a pretty decent product."

In a major challenge to Google, which for years has outpaced Microsoft in search and browser technology, Microsoft announced plans to integrate its rival AI chatbot ChatGPT into its Bing search engine and other products one day after Google's event.

The prompt given to Bard in the advertisement is "What new discoveries from the James Webb Space Telescope (JWST) can I tell my 9-year old about?"

Bard responds with a number of responses, one of which suggests that the JWST was used to take the first images of an exoplanet—a planet outside the solar system of Earth. This is incorrect because NASA has confirmed that the Very Large Telescope (VLT) of the European Southern Observatory took the first images of exoplanets in 2004.

A spokesperson for Google stated: "This highlights the importance of a rigorous testing process, something that we’re kicking off this week with our Trusted Tester program."

"We’ll combine external feedback with our own internal testing to make sure Bard’s responses meet a high bar for quality, safety and groundedness in real-world information."

Hours before the Paris launch, senior executive Prabhakar Raghavan promised that users would use the technology to interact with information in "entirely new ways." However, the error was discovered hours earlier. On Wednesday, Raghavan presented Bard as the company's future, telling the audience that "the only limit to search will be your imagination" when generative AI is used.

More than a million people had seen the advertisement on Twitter as of this writing.