Kelley School Research Explains Why A Bad First Impression Cost Google $100 Billion — Or More

Research from the Indiana University Kelley School of Business and the University of Minnesota’s Carlson School of Management has found that errors in AI-powered chatbot demos can cause serious damage to the reputation of the software vendor. This was exemplified when Google’s launch of their chatbot, Bard, went wrong, resulting in a one-day $100 billion decrease in market value for Alphabet, Google’s parent company. The research suggests that it may not be the best strategy for AI software vendors to release incomplete products and then fix bugs and provide additional features afterwards.