The Naver Corp. web site organized on a display in Gimpo, South Korea on Sept. 9, 2021.
SeongJoon Cho | Bloomberg | Getty Pictures
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 line 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 serps as they’re able to present solutions to customers’ questions straight, as an alternative of presenting a listing of webpages that the person has to flick thru to search out a solution.
This might result in a faster search course of for the person — assuming all the data introduced is appropriate.
If fewer individuals use serps, that might result in a decline in search advert income, typically the most important 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 models, similar to its content material platform Naver Webtoon and multimedia cell utility Snow, fintech arm Naver Pay and an e-commerce platform in Naver Procuring.
Chatting with CNBC’s Chery Kang in South Korea, Naver CFO Kim Nam-Solar says AI might be a “enormous alternative” for every of its companies, “whether or not it is enhanced search [results], whether or not it is [an] enhanced procuring expertise, whether or not it is fintech and even in relation to 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, nevertheless it’s essential to every of our companies.”
When it comes to the person expertise, Kim says an AI-powered Naver would imply an enhanced search expertise, procuring expertise in addition to journey suggestions for customers.
He believes that Naver is the most important go-to website by way of journey itinerary searches. “So to the extent that AI can truly higher that have, I believe it is a recreation changer for the person.”
In its first-quarter earnings presentation, Naver revealed that the corporate is about to launch its “hyperscale AI” product, named HyperCLOVA X this summer time. The corporate stated it will “present generative AI-driven seek for customers and new personalized companies 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 12 months. Working revenue stood at 330.5 billion gained, a 9.5% enhance year-on-year.
Shares of Naver have been buying and selling 1.93% larger on Tuesday, constructing on their 5.56% achieve Monday after the corporate launched ends in the morning.