Google seems to have the most difficulty executing when it comes to AI, says Perplexity CEO

CNBC Television
4 Mar 202404:45

TLDRIn the transcript, the co-founder and CEO of Perplexity discusses the AI landscape, noting Microsoft's success in enterprise integration and the challenges faced by Google and Apple in the AI answer engine space. Perplexity aims to provide direct answers to queries, bypassing the need for users to sift through links and ads, thus saving time for knowledge workers and potentially disrupting Google's dominant search engine model.

Takeaways

  • 🚀 The rise of smaller companies like Perplexity is challenging the dominance of tech giants like Microsoft and Google in the AI space.
  • 🌟 Microsoft is excelling by rapidly integrating its products into various enterprises and creating co-pilots for different sectors.
  • 📉 Google seems to be struggling due to its business model and the market's perception of its ability to execute in the AI answer engine space.
  • 🔍 The average user's association of Google with accuracy is being questioned in the age of AI, where fact-checking and ethics are crucial.
  • 💡 Perplexity aims to differentiate itself by providing direct answers to queries, eliminating the need to sift through links, spam, and ads.
  • ⏱️ Answer bots are revolutionizing search by offering immediate responses, much like how Google's PageRank disrupted the portal model of Yahoo!
  • 💼 The shift towards answer engines can significantly impact productivity, especially among knowledge workers in the United States.
  • 🤖 The success of AI answer engines depends on user satisfaction and the value they provide in terms of time-saving and direct information retrieval.
  • 📈 As more professionals opt for efficient AI tools, the traditional search engine model may face a decline in usage during work hours.
  • 🔑 The key to the AI answer engine market lies in understanding user needs and delivering accurate, ethical, and prompt responses.

Q & A

  • What is Perplexity and how does it differentiate itself from other AI companies?

    -Perplexity is an AI company that labels itself as the world's first A.I. answer engine. It differentiates itself by providing direct answers to users' questions, eliminating the need to sift through links, spam, and ads, which is a common experience with traditional search engines like Google.

  • How does the CEO of Perplexity view the current performance of Microsoft in the AI space?

    -The CEO of Perplexity believes that Microsoft is doing tremendously well in the AI space. They are rapidly integrating their products into various enterprises and are one of the fastest and best executing companies.

  • What is the market's perception of Apple and Google in terms of their AI offerings?

    -The market seems to have a negative perception of both Apple and Google in the AI space. Apple is seen as lacking in product offerings, while Google is viewed as having difficulty executing well in AI, partly due to their business model and the public's high expectations for accuracy.

  • What challenges does Google face in the AI answer engine space?

    -Google faces challenges in the AI answer engine space because their traditional strength lies in providing accurate search results. However, in the age of AI, where mistakes and different ethical considerations of AI models are crucial, Google's past reputation may not be as helpful. Mistakes made by Google are magnified more than those made by other companies, making it difficult for them to excel in this area.

  • What was the inspiration behind the creation of Perplexity's AI answer engine?

    -The inspiration behind Perplexity's AI answer engine came from the CEO's personal experience of trying to find health insurance as a startup founder. The CEO was frustrated with the lack of direct answers and the abundance of ads when searching for information, leading to the creation of a tool that could provide direct answers to questions.

  • How does Perplexity's AI answer engine aim to change the user experience compared to traditional search engines?

    -Perplexity's AI answer engine aims to change the user experience by providing direct answers to questions, saving users time and eliminating the need to sift through links and ads. This approach is seen as the next evolution of search, similar to how Google's search engine replaced the portal model of Yahoo!.

  • What impact could the shift to AI answer engines have on knowledge workers in the United States?

    -The shift to AI answer engines could significantly impact knowledge workers by making them more productive. As these workers are among the highest paid in the United States, any increase in productivity could have a substantial effect on their efficiency and the overall economy.

  • How does the CEO of Perplexity view the future of search engines?

    -The CEO of Perplexity sees the future of search engines as moving towards providing direct answers to users' questions, rather than just selling the link UI as the highest margin internet business model. This shift is driven by the desire for efficiency and the need for users to save time when searching for information.

  • What is the significance of the term 'co-pilots' mentioned by the CEO of Perplexity?

    -The term 'co-pilots' refers to the specialized AI tools that Microsoft is developing for various sectors, such as finance and health, to assist and streamline tasks. These AI co-pilots are designed to integrate with enterprise operations and improve efficiency.

  • What is the potential impact of Perplexity's AI answer engine on the advertising industry?

    -The potential impact of Perplexity's AI answer engine on the advertising industry is significant because it challenges the traditional model of selling links and ads as the primary revenue source for search engines. By providing direct answers, Perplexity could disrupt the current business model that relies heavily on advertising.

  • How does the CEO of Perplexity view the role of AI in the context of user expectations and ethics?

    -The CEO of Perplexity believes that in the context of AI, user expectations and ethics play a crucial role. Users expect AI models to provide accurate and reliable information, and any mistakes made by these models are highlighted and scrutinized. Therefore, AI companies must prioritize ethical considerations and strive to minimize errors in their models.

Outlines

00:00

🚀 Startup Competing in the A.I. Landscape

The segment begins with a discussion about smaller companies making progress in the A.I. industry, specifically highlighting Perplexity, a company that claims to be the world's first A.I. answer engine. The CEO of Perplexity shares insights on the competition with major tech companies like Microsoft and Google. Microsoft is praised for its rapid integration with enterprises and its various co-pilot products, while concerns are raised about Apple's lack of new products and Google's difficulties in the A.I. space due to their business model and public perception.

Mindmap

Keywords

💡A.I. Answer Engine

An A.I. Answer Engine refers to a sophisticated system designed to provide direct answers to user queries, rather than a list of links or results. In the context of the video, Perplexity positions itself as the world's first such engine, aiming to revolutionize the way users interact with information by offering immediate, precise responses to their questions. This concept is central to the video's discussion on the evolving landscape of AI and its impact on traditional search engines like Google.

💡Competition

Competition in this context refers to the rivalry between different companies in the technology sector, specifically those involved in developing and providing AI-driven solutions. The video script discusses how smaller companies like Perplexity are making progress in competing with larger, established entities such as Microsoft and Google. It highlights the dynamic nature of the tech industry, where innovation and agility can level the playing field.

💡Enterprise Integration

Enterprise Integration refers to the process of incorporating various software, tools, and systems into a company's existing infrastructure to streamline operations and improve efficiency. In the video, Microsoft is praised for its efforts to integrate its products into numerous enterprises, particularly through the development of co-pilots for finance, health, and Office 365. This highlights the importance of adaptability and compatibility in the tech industry to meet the diverse needs of businesses.

💡Market Perception

Market Perception is the collective view or opinion of investors and consumers about a company, its products, or its overall performance. In the video, the speaker discusses how the market perceives certain tech giants, with Apple being seen as lacking new products and Google struggling in the A.I. space. This perception can significantly influence a company's market value and strategic direction.

💡Product Differentiation

Product Differentiation is the process of distinguishing a company's product or service from those of competitors by highlighting unique features, benefits, or aspects. In the video, the creator of Perplexity explains that their A.I. Answer Engine differentiates itself from existing search engines by providing direct answers to queries, bypassing the need for users to sift through links and ads. This strategy aims to offer a more efficient and user-friendly experience.

💡Health Insurance

Health Insurance is a type of coverage that pays for medical expenses incurred due to illness or injury. In the video, the founder of Perplexity uses his personal experience of trying to understand health insurance terms and options as an example of the need for their A.I. Answer Engine. This illustrates the practical application of the technology in addressing complex, real-world problems.

💡Search Engine

A Search Engine is a software system designed to search for information on the World Wide Web in response to a user's query. The video discusses the evolution of search engines and how they have traditionally provided a list of links to web pages. The emergence of A.I. Answer Engines like Perplexity represents a shift from this traditional model, aiming to deliver direct answers and improve user efficiency.

💡User Experience

User Experience (UX) refers to the overall satisfaction and ease of use that a person has when interacting with a product or system. In the context of the video, the focus is on how A.I. Answer Engines can enhance UX by providing direct answers to queries, saving users time and reducing the need to sift through irrelevant links and ads. This highlights the importance of designing technology solutions that prioritize user convenience and efficiency.

💡Knowledge Workers

Knowledge Workers are individuals who perform intellectual or technical work, often requiring a high level of expertise and education. In the video, it is mentioned that when knowledge workers stop using traditional search engines like Google for daily searches at work, it signifies a shift in the way information is accessed. This underscores the impact of A.I. technologies on productivity and efficiency in the workplace.

💡Productivity

Productivity refers to the efficiency and effectiveness with which tasks are completed. In the context of the video, it is emphasized that by using A.I. Answer Engines, knowledge workers can save time and increase their productivity, as they can quickly obtain the information they need without being distracted by ads or irrelevant links. This highlights the potential of A.I. to transform the way work is done and the value placed on time-saving technologies.

💡Innovation

Innovation is the process of introducing new ideas, methods, or products to improve or enhance existing systems, services, or products. The video script highlights the role of innovation in the tech industry, particularly in the development of A.I. Answer Engines, which represent a significant departure from traditional search engines. It underscores the importance of companies like Perplexity in driving progress and shaping the future of information retrieval.

Highlights

The co-founder and CEO of Perplexity discusses the company's mission as the world's first A.I. answer engine.

Perplexity aims to provide direct answers to queries, eliminating the need to sift through links, ads, and spam.

Microsoft is praised for its rapid integration with enterprises and its diverse range of co-pilots for various sectors.

Apple's lack of product innovation and Google's difficulties in executing A.I. strategies are discussed in the context of market perception.

The expectation for Apple's update on Siri and the anticipation of interesting developments in machine learning are highlighted.

Google's challenge in the A.I. space is attributed to its association with accuracy and the magnification of its mistakes.

The interviewee shares a personal anecdote about the inspiration behind creating an A.I. answer engine, stemming from a need for clear health insurance information.

The problem with existing search engines is identified as浪费时间 sifting through links and ads, rather than providing direct answers.

Answer bots are positioned as the next evolution of search, similar to how Google's search pages disrupted the portal model of Yahoo!.

The impact of knowledge workers abandoning Google for day-to-day searches is discussed in terms of productivity and time savings.

Perplexity's approach is to provide users with the information they need without浪费时间, enhancing user experience and efficiency.

The interviewee emphasizes the importance of user satisfaction and the shift in user behavior towards more direct and efficient information access.

The discussion highlights the potential for A.I. answer engines to redefine the landscape of information retrieval and user interaction.

The market's response to different A.I. companies and their strategies is analyzed, with a focus on execution and user expectations.

The interview concludes with a reflection on the transformative potential of A.I. answer engines on traditional search engines like Google.

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