Google's Gemini fiasco a turning point, analyst says

The botched launch of Google's new AI tool Gemini might be a blessing or a curse, according to a stock expert.

Steven Fiorillo of Seeking Alpha said Wednesday that Gemini will either be Google's "destruction or its resurrection" after a series of public failures caused the company to pull some features and promise to fix it.

After arguing that the disastrous launch was avoidable, Fiorillo predicted, "This will either lead to Google's destruction as trust from the end user is lost or lead to its resurrection as GOOGL utilizes this moment to crush its competition."

Fiorillo dubbed Google's introduction of Gemini without verifying its correctness "negligent" and criticized the chatbot's false answers and portrayals of current and historical events.

Google stopped Gemini's image generation nearly two weeks ago after social media users complained that it was creating erroneous historical photographs that occasionally replaced White people with Black, Native American, and Asian people.

last week that Gemini's bias is being fixed "around the clock" and that the model's photos are "completely unacceptable." Google wants to relaunch Gemini AI's ability to generate human photos in the coming weeks, and Fiorillo warned its reputation could depend on it.

"All eyes will be on GOOGL as the ball is in their court," said. "GOOGL will either rise like a phoenix from the ashes or allow its competitors to capitalize on this moment and control the narrative about how the results from GOOGL can't be trusted."

Fiorillo is optimistic, saying, "I believe Google won't take this lying down, internal changes will be made, and it will dominate AI-enabled search."