The overhaul deploys OpenAI's ChatGPT technology, which has taken the world by storm since its launch last year. The move is by far the biggest threat Google has seen to its dominance in web search - and marks the beginning of an AI arms race between the companies. "The race starts today," Microsoft boss Satya Nadella said. Developed by Microsoft-backe
Mr Nadella said he thought it was poised to change the nature of online search - and interactions with many other software.
"This technology will reshape pretty much every software category that we know," he said.
Bing will now respond to search queries with more detailed answers - not just links to websites.
Users are also able to chat with the bot to better tailor their queries. More contextual answers will be added on the right hand side of a search page.
The new Bing search engine will be live right away - with a limited number of searches for each person.
The announcement comes a day after Google revealed details of its own new chatbot, Bard.
Both companies are scrambling to get their products to market.
In a note to investors after the announcement, analyst Dan Ives of Wedbush Securities said he thought that Microsoft's investment would "massively boost" the firm's ability to compete.
"This is just the first step on the AI front ... as [the] AI arms race takes place among Big Tech," he said.
Microsoft, an early backer of San Francisco-based
Last month it announced it was extending its collaboration with OpenAI in a "multiyear, multibillion dollar investment".
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