The Naver Corp. web site organized on a display in Gimpo, South Korea on Sept. 9, 2021.
SeongJoon Cho | Bloomberg | Getty Photos
Whereas synthetic intelligence chatbots like ChatGPT pose a risk to the search advert market, South Korean web big Naver sees the rise of AI as a possibility for the corporate.
Naver is South Korea’s most used search engine, in keeping with Statista, commanding a 61.2% market share of month-to-month lively customers. In distinction, the ever ubiquitous Google has a 28.55% market share within the nation.
AI-powered chatbots like ChatGPT pose a risk to search engines like google and yahoo as they’re able to present solutions to customers’ questions immediately, as a substitute of presenting an inventory of webpages that the consumer has to flick through to search out a solution.
This might result in a faster search course of for the consumer — assuming all the data introduced is appropriate.
If fewer individuals use search engines like google and yahoo, that may result in a decline in search advert income, typically the biggest income stream for his or her operators. In 2022, Alphabet generated over 57% of its income, or $162 billion, from Google searches alone.
Whereas Naver, like Google, additionally primarily operates a search engine, it additionally has different enterprise items, similar to its content material platform Naver Webtoon and multimedia cellular utility Snow, fintech arm Naver Pay and an e-commerce platform in Naver Purchasing.
Talking to CNBC’s Chery Kang in South Korea, Naver CFO Kim Nam-Solar says AI will likely be a “big alternative” for every of its companies, “whether or not it is enhanced search [results], whether or not it is [an] enhanced purchasing expertise, whether or not it is fintech and even on the subject of Webtoon suggestions, and even Webtoon illustration instruments.”
He believes that AI will solely strengthen Naver’s choices, declaring that “AI is one thing that is not international to us, however it’s crucial to every of our companies.”
When it comes to the consumer expertise, Kim says an AI-powered Naver would imply an enhanced search expertise, purchasing expertise in addition to journey suggestions for customers.
He believes that Naver is the biggest go-to web site by way of journey itinerary searches. “So to the extent that AI can really higher that have, I feel it is a recreation changer for the consumer.”
In its first-quarter earnings presentation, Naver revealed that the corporate is about to launch its “hyperscale AI” product, named HyperCLOVA X this summer season. The corporate stated it could “present generative AI-driven seek for customers and new personalized providers for enterprises.”
Over the primary quarter, the corporate’s gross sales rose 23.6% year-on-year to 2.28 trillion gained (1.72 billion), however its internet revenue tumbled 71.2% to 43.7 billion gained in contrast with the identical interval final yr. Working revenue stood at 330.5 billion gained, a 9.5% improve year-on-year.
Shares of Naver had been buying and selling 1.93% larger on Tuesday, constructing on their 5.56% acquire Monday after the corporate launched ends in the morning.
