ChatGPT vs Perplexity: Is This the End of Google Search? 🌐 🔍️

EDITOR’S NOTE

Dear Nanobiters,

Welcome to another Product Spotlight edition of Nanobits.

So, you know how OpenAI just dropped their new search capability in ChatGPT? Well, I was all over that. Spent the whole weekend glued to my screen, even made it my default search engine with their Chrome extension.

Truth be told, I've been flitting between Perplexity and Google for a while now. Usually, I end up back with Google because it's just easier to corroborate the data obtained from the AI tool, you know?

What really struck me was how much cleaner it felt compared to Google's AI Overviews. I got the info I wanted, the sources were super clear, and it actually explained why it picked those links. Seriously, I haven't seen that kind of detail anywhere else, except probably in Perplexity.

Just thought I'd share my little search adventure in today’s newsletter!

WHAT IS CHATGPT SEARCH?

Two weeks ago, OpenAI launched ChatGPT Search.

Now, instead of relying on a separate search engine, users can obtain current information and direct links to relevant sources directly within the ChatGPT interface.

This combines ChatGPT's conversational nature with access to real-time data like news, stock prices, and sports scores.

ChatGPT intelligently determines when to utilize web search based on user queries, but users can also manually initiate a search.

This updated search functionality is accessible through the ChatGPT website, desktop app, and mobile app. Currently, it's available to ChatGPT Plus, Team, and SearchGPT waitlist users. OpenAI plans to expand access to Enterprise and Education users in the coming weeks, with free users gaining access in the following months.

How it works?

ChatGPT Search is powered by a refined version of the GPT-4o language model. This model has undergone further training using innovative synthetic data generation methods, including a technique called "distilling outputs" from OpenAI's o1-preview model.

To deliver comprehensive search results, ChatGPT Search utilizes a combination of sources:

• Third-party search providers: It leverages established search engines to access a vast range of web pages.

• Direct partnerships: It incorporates content provided directly by partners, ensuring access to authoritative and up-to-date information.

This approach allows ChatGPT Search to provide users with the most relevant and accurate information possible.

Building upon User Feedback

The development of ChatGPT Search was heavily influenced by valuable feedback gathered from the SearchGPT prototype. This iterative process allowed OpenAI to refine the search experience and incorporate user preferences into the final product.

CHATGPT SEARCH’S KEY FEATURES

Finding the right answers online often involves tedious sifting through search results and navigating numerous websites.

ChatGPT Search simplifies this by allowing users to pose questions in a conversational manner, just as they would with a person. In response, ChatGPT intelligently retrieves and synthesizes information from the web, providing a more efficient and intuitive search experience.

This enhanced search functionality goes beyond basic information retrieval. Users can engage in deeper exploration through follow-up questions, with ChatGPT maintaining context and refining its answers accordingly.

The following image shows the Perplexity result for the exact search term, as shown in the previous picture.

To further enrich the search experience, OpenAI has collaborated with news and data providers. This partnership brings real-time updates and visually appealing displays for specific categories like weather, stocks, sports, news, and maps.

OpenAI actively collaborates with leading publishers worldwide, including Associated Press, Axel Springer, Condé Nast, and others, to ensure a comprehensive and diverse range of sources. 

Direct Access to Source Materials

A key feature of ChatGPT Search is its commitment to transparency and attribution. Each response includes links to the original sources, empowering users to investigate the information further and verify its credibility.

ChatGPT Search Chrome Extension

ChatGPT has introduced a browser extension that takes a rather unconventional approach to search. Instead of simply augmenting existing search engines, it replaces the default search bar functionality with ChatGPT queries.

This strategy has sparked debate, with some users appreciating the direct access to ChatGPT's conversational search capabilities while others express concerns about potentially bypassing traditional search engines like Google.

I installed the Chrome pluggin; for the first search it asked me if I want to search on Google or ChatGPT, I chose the latter because I was testing out the capability. However, for consequent searches I was not given a choice. 

I understand the need to balance user experience and product adoption. But I am not yet ready to shift to ChatGPT Search entirely and hence, I uninstalled the extension.  

The long-term adoption of this extension remains to be seen, as user preferences and the evolving search landscape will ultimately determine its success.

Points to consider:

• Disruption of traditional search: The extension challenges the established dominance of conventional search engines.

• User experience: It offers a unique search experience centered around natural language interaction.

• Potential limitations: Users might miss the breadth and depth of results offered by established search engines.

• Ethical considerations: The tactic raises questions about transparency and user choice in search behavior.

The impact of ChatGPT's Chrome extension will likely depend on its ability to provide a compelling and valuable alternative to traditional search methods.

Does ChatGPT Search use Bing for search?

Yes, it does. The first part of the “Sources“ list is “Citations, “ and the second part is “Search Results.“

“Search Results“ is from Bing Search.

CHATGPT SEARCH vs. PERPLEXITY

Now, let’s put both these tools to a test.

For this experiment, I chose the following problem statement.

Competitor analysis of fraud prevention software in the LATAM market for determining a new regtech start-up's right to win and positioning statement. 

This was my prompt ⤵️ 

https://hyperverge.co/blog/jumio-competitors/
https://hyperverge.co/blog/top-kyc-providers/
https://hyperverge.co/blog/best-kyc-software/
https://hyperverge.co/blog/veriff-vs-persona/
https://hyperverge.co/blog/socure-competitors/
https://hyperverge.co/blog/persona-alternatives/

Analyze the above links and create a comparison table for Sumsub, Onfido, Jumio, Persona, iDenfy, Seon for the following parameters: 

Offerings
Target market
Industry coverage
Government issued IDs/docs supported
Comprehensive vs. piecemeal solution
Free trial
Analytics + Dashboard
Product Performance (Accuracy, time to goal, etc.)
Technical performance (latency, downtime, etc.)
Price
Technology (use of AI, etc.)
Platform support
Integration support

Show your findings in a tabular format where rows are parameters and columns are companies. 

ChatGPT Search

You can find the detailed results in this Excel sheet.

Perplexity

You can find the detailed results in this Excel sheet.

My observations:

- ChatGPT Search gave very generic answers. I mean just read the table; there are no numbers, no specific information pertaining to the companies. To say the least, I was thoroughly disappointed. 

- Perplexity, on the other hand, gave a detailed analysis of all the companies. These details were super minute. And, then it cleaned and condensed the analysis into a presentable table (in the Excel sheet from before).

- ChatGPT Search used 12 different sources for its results while Perplexity used 57! No doubt Perplexity provided a more detailed table. 

Using the Perplexity result as my first draft, I did my own analysis of the competitors, and here is the final result [fully certified by my client].

Apart from doing a great job on the first draft, Perplexity saved me a lot of time! Now, that’s something—especially for a solopreneur or a marketer.

Within 5 minutes, you have very robust research on your competitors. From that data, you can easily build “Competitor Profiles” for the sales teams to use when selling your product.

NANOBITS VERDICT

If you ask me, this is how I would rank the tools:

🥇 Perplexity
🥈 ChatGPT Search
🥉 Google Search

Overall Assessment

When it comes to AI-powered search, it’s a trade-off between speed and depth.

ChatGPT Search prioritizes speed, delivering answers with minimal delay. While generally accurate, its responses may take a brief moment to generate. The information is presented concisely, which can be beneficial for quick understanding but may not be ideal for users who prefer to skim through extensive details.

Perplexity adopts a different approach, focusing on depth and breadth of information. While it may take slightly longer to generate results, it provides a wealth of data, making it well-suited for in-depth research. However, this extensive output can feel overwhelming for users seeking quick, factual answers.

The choice between ChatGPT Search and Perplexity depends on the user's specific needs and preferences. Those who value speed and conciseness may favor ChatGPT Search, while those who prioritize comprehensive information may find Perplexity more suitable.

Generative Search vs. Google

While ChatGPT Search and Perplexity offer intriguing alternatives, Google remains a dominant force in web search.

A key challenge for AI-powered search tools is establishing trust and reliability. Users often feel the need to cross-reference results with Google, highlighting the deeply ingrained reliance on traditional search engines.

For instance, a query like "What's the market cap of the digital payments sector?" might require verification from a trusted source like Google.

The familiar mental model and streamlined experience of Google search remain strong advantages.

For now, tools like ChatGPT Search and Perplexity seem better suited for in-depth research tasks where users build knowledge progressively. When it comes to speed and efficiency for quick information retrieval, Google still holds a clear edge.

However, the exploration of AI-powered search inspires optimism. These tools hint at a potential renaissance in how we access information online. Imagine a search experience that is:

• Ad-free: Free from distractions and commercial influences.

• Source-centric: With direct links to relevant websites.

• Brand-aware: Capable of recognizing and prioritizing brand mentions.

• Intelligent: Understanding user intent and providing contextually relevant results.

This vision represents a new frontier for organic traffic, offering exciting possibilities for content creators and businesses alike. While the future of search remains dynamic, AI-powered tools like ChatGPT Search and Perplexity undoubtedly play a pivotal role in shaping its evolution.

Overall, I would like to rate it a 7 out of 10. 

I would definitely suggest that ChatGPT Plus and Teams users, as well as SearchGPT users, experiment with the tool. As always, I would love to hear your thoughts on the product. Let me know in the comments below, or simply reply to the email.