Alphabet (GOOGL.US) shares are losing more than 7% today as the AI conference in Paris, where the company unveiled its own ‘generative AI’ tool, powered by language engine laMDA scored a blunder by giving inaccurate answers.

Because of this situation, the market began to see Google as a company potentially lagging behind Microsoft, whose investment in OpenAI and the ChatGPT tool has been breaking records recently:

AI chatbot ‘Bard’ tried to explain in simple language (intended, to a 9-year-old child) the functions of Webb’s telescope, but upon verification, it turned out that not all the information it provided was correct.

Alphabet intends to provide a ‘multisearch’ function within Google Lens powered by AI MUM (Multitask Unified Model) technology through which users can synchronize image search with functions that AI will help achieve (including searching for objects, similar objects, action instructions, etc.).

Yesterday, Microsoft announced a deepening of its partnership with OpenAI and the implementation of AI features in its own, not-so-popular search engine Bing in what the market may see as a growing competition to Google’s most popular browser in years.

While the laMDA bug at Alphabet’s presentation was indeed ‘public’ and unlucky, and an indication of the imperfection of the product, ChatGPT is not a bug-free tool either, which is indirectly due to the database on which it operates.

This has been emphasized recently by Sam Altman, CEO of OpenAI, among others. Chatbot has repeatedly given incorrect answers, resulting in, among other things, a pushback against using it to analyze legal issues.

Despite the risk reversal on Wall Street following hawkish comments from Williams and Cook of the Fed, C3.ai (AI.US) and Microsoft (MSFT.US) shares are gaining, although the supply side erased a significant portion of its opening gains.