Several factual Mistakes Were Made in The Launch Demo of Microsoft’s Bing A.I.

Google has been reluctant about adding AI-generated search results to its search engines, citing reputational risks and safety issues. However, Microsoft announced last week that it would release the technology to some members of the public.

Nadella stated, “I believe it’s important to not be in a laboratory.” These things must be safely removed.”

There were some issues when it came to demoing Bing AI’s answer to a query about corporate earnings

Yusuf Mehdi (a Microsoft marketing executive) navigated to Gap’s investor relations website and asked Bing AI for a summary of the “key takeaways” from the retailer’s third-quarter earnings release.

“Very cool. Massive time savings,” Mehdi said.

These are some errors in the summary.

• Gap reported a gross margin of 37.4%. However, after excluding Yeezy charges, the adjusted gross margin was 38.7%.
• Gap operating margin was 4.6% and not 5.9%. This number is not in the company report.
• The adjusted diluted earnings per share were $0.71 adjusted instead of $0.42. This number is not included in the report. Gap reported an adjusted income tax benefit of around $0.33.
• Gap released its full year outlook in August. It stated in the report that “net sales could fall mid-single figures year-over year in the fourth quarter” and suggested that revenue would decline for the entire year, as opposed to “growth of the low double digits.” There are no forecasts for operating margins or EPS.

Microsoft stated that it is aware of the errors and expects Bing AI not to make them.

A spokesperson for Microsoft told CNBC that they were aware of the report and had analyzed the findings to improve the experience. “We are aware that there is much to do and that mistakes may be made during the preview period. This is why we need your feedback so that we can improve the model.

Bing AI was then asked by Microsoft to compare Gap’s earnings and Lululemon’s report. Mehdi asked Bing to combine the data from both reports into one table.

He said, “Look at how incredible this is.” “Just like this, I can get an exact answer to my question in one table. Imagine how much more time it would have taken.

The table contains several errors, beginning with the margins.

• Lululemon’s gross profit margin was 55.9% and not 58.7%.
• The operating margin of the company was 19% and not 20.7%.
• Lululemon reported adjusted EPS of $1.62 and diluted EPS of $2. Bing reported a $1.65 diluted EPS number.
• Gap had $ 679 million in cash and cash equivalents. Not $1.4 billion.
• Gap’s inventory was $3.04 billion, not $1.9 million.