Google's Bold AI Ad Backfired Amidst Olympic Fervor, Stirring Public Debate On Technology Versus Human Creativity As Shares Tumble 6.59% At Opening

• Google's recent ad sparked a backlash over the perceived replacement of personal effort with AI.
• The negative public reaction led Google to withdraw the ad from ongoing Olympics coverage.
• The company has experienced a 16% year-to-date gain.

In an effort to blend artificial intelligence with everyday life, Alphabet Inc.'s GOOGL latest advertisement showed a father using the AI chatbot Gemini to help his daughter write a letter to Olympic star Sydney McLaughlin-Levrone.

The ad was aired during a prominent Olympics broadcast as part of Google's initiative to showcase AI's practical uses in daily tasks. However, it quickly faced criticism for implying that AI could replace personal effort in creating heartfelt messages.

The public's response was largely negative, with many viewers taking to social media to express their concerns, calling the ad tone-deaf and disrespectful to genuine human creativity.

This backlash highlights a growing unease about technology encroaching on areas typically reserved for personal human effort. In light of the negative feedback, Google decided to pull the advertisement from ongoing Olympics coverage.

This move shows the company's awareness of the need to balance technological progress with maintaining human elements in creativity. Google's quick action also demonstrates its commitment to using AI as a tool to enhance human abilities rather than replace them.

This incident is not unusual; it highlights a larger trend where tech companies often face public criticism when they attempt to include advanced AI in consumer products. As a result, these companies frequently pull back or modify their initial offerings based on consumer feedback.

Google's financial performance has seen some notable ups and downs. After hitting a record high on July 10, the stock has dropped over 14%. However, it's still up a substantial 128% from November 2022 to July 2024 and has a year-to-date gain of 16%.

On Monday, Google's shares opened significantly lower, down 6.59%, mirroring broader market trends as the S&P 500 also fell by 3.65%.

Analysts are monitoring these changes closely. If this downturn turns out to be temporary, the stock's growth could continue. But if it weakens further, there's a major support level at $151, which is the high set in January 2022.

After the closing bell on Friday, August 2, the stock closed at $166.66, trading down by 2.35%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.