Bob Iger’s Turnaround Plan for Disney Takes Shape

Shares in Alphabet tumbled more than 7 percent on Wednesday after the company showed off the capabilities of its Bard chatbot at an event in Paris. While Google executives emphasized that they already incorporate A.I. into search, they showed how Bard could help users plan trips or car purchases. And they also demonstrated new A.I.-enhanced tricks for Google Maps.

But Google was on its back foot, after Reuters reported that an ad for Bard put out earlier this week flubbed a question about deep space. Company representatives acknowledged the mistake, noting that Bard was still being refined.

The error showed why Alphabet is being conservative on A.I. Unlike Microsoft, whose Bing claims a sliver of the search market, Alphabet has a lot to lose if A.I.-powered consumer services like chatbots give wrong answers. (Or, as some researchers worry, disinformation.) While investors, and some employees, have urged Alphabet to push more A.I. products out the door, company leaders want to err on the side of caution.

That hasn’t stopped rivals from taking shots: Sam Altman, whose OpenAI created ChatGPT and is partnering with Microsoft, called Alphabet “a lethargic search monopoly” that was feeling the heat from competition. After all, Microsoft’s ChatGPT-powered Bing has gotten positive reviews, and more rivals are rushing to create chatbots and other services, with Alibaba the latest to do so.

But some on Wall Street think that Alphabet doesn’t need to rush — yet. “Whoever has the better product and strategy ultimately wins,” analysts at Truist wrote to investors on Wednesday. They added that they expect Alphabet’s years of investment in A.I. “should help maintain its dominance.”

New worries about the Adani empire

A fresh wave of bad news is shaking investor confidence in the holdings of the Indian industrialist Gautam Adani, whose fortune has been rocked by accusations that his conglomerate operates “the largest con in corporate history.”

Article source: https://www.nytimes.com/2023/02/09/business/bob-iger-disney-turnaround-plan.html