This decline was triggered by a 4.4 percent drop in stock prices following the suspension of Google Gemini’s AI image creator and revelations about Gemini’s responses in the chat feature.
In a report by Bloomberg, Melius Research analyst Ben Reitzes cautioned that the issues surrounding Gemini could tarnish Google's reputation as a reliable source for AI. Reitzes emphasized the impact of these challenges on Google's position in the AI market, stating, "We have been arguing that Search behavior is about to change - with new AI-infused features." He further highlighted the potential opportunities for competitors arising from concerns about Google's AI capabilities.
Meanwhile, Google DeepMind CEO Demis Hassabis disclosed that the image generating feature of Gemini would be offline for "a few weeks" to address the raised issues, as reported by the New York Post. Hassabis expressed optimism about resolving the problems swiftly, stating, "We have taken the feature offline while we fix that. We are hoping to have that back online very shortly in the next couple of weeks, few weeks."
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Notably, images produced by Gemini's feature depicted unconventional portrayals, including a female pope and a black George Washington, among other historically significant figures. Hassabis acknowledged the shortcomings of the feature during his presentation at the Mobile World Congress in Barcelona, admitting that it was not functioning as intended.
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Furthermore, Gemini's chat feature sparked controversy by evading clear stances on sensitive topics. Despite condemning the use of derogatory language, it hesitated to denounce pedophilia and struggled to define basic concepts like 'woman.' Additionally, when questioned about the comparison between popular conservative figures and historical dictators like Hitler and Stalin, Gemini's responses remained ambiguous.