Microsoft's approach to search with Bing Chat and the advent of conversational AI in advertising are truly exciting advancements in the field. Bing Chat, developed to address the long-standing issues of conventional search, has been making waves with the integration of robust language models like those from OpenAI, coupled with Microsoft's proprietary search index. 

With over half a billion Bing Chat interactions reported since its inception, with a 70% positive feedback rate on answers provided, it is evident that this innovative approach is gaining traction.

Moreover, the Bing Image Creator's success, boasting over 200 million images generated by users, is another testament to the efficacy of this new technology.

From an advertiser's perspective, the early returns are exceedingly promising. Microsoft's conversational AI is showing signs of significantly higher click-through rates compared to traditional search methods, driving not just user engagement but also conversion rates. This increased CTR is seen across search results and advertisements alike, making it a promising development for marketers.

But that's not all – Microsoft is not just stopping here. 

They are actively creating more opportunities for advertisers to increase user engagement further, which could ultimately drive even higher conversion rates. The transition from traditional keyword targeting to a topic-centric approach is a game-changer, completely revolutionising the concept of keyword bids.

Consider, for example, a user searching for a dress suitable for a wedding in Chicago in July. With Bing Chat, the user's query is not just processed for keyword matches but analysed for intent. The AI understands that July is typically hot and humid in Chicago, so it presents results for sleeveless, lightweight dresses suitable for the weather. This comprehension of user intent is what makes conversational AI such a breakthrough in the field of advertising. By aligning advertisements more closely with user conversations, advertisers can expect significantly improved ROI.

In conclusion, Microsoft's initiatives in integrating AI in advertising and search are not just ground breaking; they are reshaping our understanding of what AI can achieve in these areas and what it will bring to the future of advertising and search.