Google’s parent company Alphabet saw its market value drop by $96 billion on Wednesday, after its new artificial intelligence tool Gemini sparked a backlash from users and critics. Gemini, launched last month, is a powerful AI system that can generate text, images, and code based on natural language queries. However, many users have reported that the tool produces biased, inaccurate, or offensive results, raising ethical and legal concerns.
Google Loses $96B in Value on Gemini Fallout
Since Alphabet decided to halt features of its AI tool Gemini, the company has experienced a substantial hit in the stock market. Data from Dow Jones reveals that Alphabet’s shares plummeted by 5.4%, leading to a staggering loss of $96.9 billion in market capitalization. This decline underscores the severity of the backlash surrounding Gemini and its perceived biases.
CEO Sundar Pichai’s Damage Control
In response to the crisis, Google’s CEO, Sundar Pichai, has been actively engaged in damage control efforts. Pichai assured employees that the company is working tirelessly “around the clock” to address the bias issues plaguing Gemini. He deemed the images generated by the AI tool as “completely unacceptable,” emphasizing the urgency of rectifying the situation.
AI Tool’s Bias Issues
Gemini’s troubles stem from its image generation feature, which came under fire for producing historically inaccurate images that replaced White individuals with those from other racial backgrounds. This controversy ignited a wave of criticism on social media platforms, prompting Alphabet to take swift action to address the tool’s biases.
Reactions and Opinions on Gemini Tool
The fallout from Gemini has sparked a range of reactions and opinions, shedding light on the broader implications of AI technology in society.
Reflecting Progressive Thinking
While some view Gemini as a progressive tool, others argue that its biases undermine its intended purpose. Bill McGurn, writing for The Wall Street Journal, contends that Gemini reflects progressive ideals. However, the controversy surrounding its biases highlights the complexities of AI and its potential impact on societal perceptions.
Impact on the Stock Market
However, the negative impact of Gemini on Google’s reputation and finances has been significant. The company’s stock price fell by 12% on Wednesday, wiping out $96 billion from its market value. This is the largest single-day loss for Alphabet since its inception in 2015. Analysts have warned that the company may face legal actions, regulatory scrutiny, and customer loss, as a result of the Gemini debacle. They have also questioned the company’s leadership and decision-making, and its ability to handle the challenges and risks of developing and deploying AI technologies.
