Abstract:

The emergence of generative AI, and ChatGPT in particular, has presented the IT industry with a mix of opportunities and challenges, affecting industry leaders such as Google and Microsoft in particular. These companies have each taken their own approach to reap the benefits while minimizing the associated risks. Microsoft has chosen to partner by investing in OpenAI's ChatGPT and integrating it into its product suite. In contrast, Google has started to improve its own AI technologies. This paper provides a comparative analysis of Microsoft's and Google's strategies in the face of emerging advanced AI technologies. We begin with an examination of the potential and pitfalls of these technologies, followed by an examination of the strategic response of the two companies. A detailed comparative analysis is conducted, assessing various aspects of their strategies, including approach, key developments, infrastructure, risk management, innovation, long-term vision, integration of AI into their product ecosystem, market positioning, approach to the fintech sector, advertising and revenue impact, platform strategy, technology impact, strategic importance and broader area impact. It then examines both companies' investments in AI and analyzes the market response to reach final conclusions.