The launch last week of an artificial intelligence image generator called Text Image AI caused something of a negative perception in the market, as it turned out to be a disaster.
Alphabet, the parent company of Googlehas historically faced concerns on Wall Street about its efforts in artificial intelligence, but manages to recover from past episodes. However, the latest backlash centers on a since-retired imaging tool that is raising concerns in the market.
In particularWall Street is currently unsettled by the fallout from an imaging feature within the Gemini chatbot, which received criticism for creating images that were sometimes racially insensitive. Even a Google executive acknowledged that these images were “inaccurate or even offensive.”
However, this Tuesday, in the pre market The shares of the giant, part of the G7 Techno, show a slight recovery of +0.7%.
This concern led to a decline in the shares of Alphabet (GOOGL)with a drop prior to market closing this Monday of -4.5%, which led analysts to issue a warning about the direction of Google’s artificial intelligencereiterating its recommendation to hold the shares.
Nasdaq.jpg
For analysts, it is essential to highlight the recent errors of Alphabet in artificial intelligence, suggesting that they could affect the perception of Google as a reliable source in this field. Although some maintain their goal of holding the stock with a price target of $1,640, notes that Alphabet could face disruption in a space where seven other leading companies are outperforming them in optimizing margins, growth and recurring revenue.
Google: what’s behind Alphabet’s mistake
Last week’s launch of an artificial intelligence image generator called Text Image AI has contributed to the negative perception, as it turned out to be a disaster. Analysts suggest alternatives to Google search, such as the Perplexity AI solution and a new search product from OpenAI.
This scenario raises questions about Google’s reliability in the field of artificial intelligence and the possibility of the company losing ground to the competition. The widespread concern among analysts and investors suggests a growing perception that Alphabet is not advancing as quickly as some of its competitors in the artificial intelligence space.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
