Alphabet and Google CEO Sundar Pichai are leading Google towards a significant intensification of their investments in artificial intelligence (AI). This strategic move is coupled with efforts to optimize the cost structure, ensuring that these AI endeavours are well accommodated. Pichai underlines Google's unwavering commitment to enhancing the accessibility and utility of AI technologies, with the Search Generative Experience (SGE) standing as a prime example of this commitment.
The Search Generative Experience (SGE) is a pivotal project within Google's AI investment strategy. It seamlessly integrates generative AI capabilities into Google Search, opening doors for users to delve deeper into information and receive multi-perspective answers. The SGE has received positive feedback from users, leading to its expansion into India and Japan in August. Google has ambitious plans for further expansion, extending this valuable resource to diverse languages and regions.
Advertising remains an essential component of Google's new Search experience. Pichai places particular emphasis on the user-friendliness of ads, which are designed to provide actionable options and facilitate connections with businesses. Google is actively exploring novel advertising formats native to the SGE, harnessing Generative AI to deliver relevant, high-quality ads tailored to various stages of the user's search journey.
Pichai also highlights the substantial progress made by Google's AI chatbot, Bard. Bard has evolved to seamlessly integrate with various Google apps and services, offering users valuable information from Google Workspace, Maps, YouTube, and Google Flights and Hotels. The "Google it" feature has been enhanced, empowering users with additional sources to validate Bard's responses and explore web-based information.
In a recent development, Google introduced Assistant with Bard, an AI-powered personal assistant that combines generative and reasoning capabilities with Assistant's personalized assistance. This innovative feature allows users to interact with Bard using text, voice, or images, with plans to extend its availability to Android and iOS mobile devices.
Pichai also underscores the pivotal role of AI in data analysis, with Google Cloud emerging as a standout choice due to its unified platform capable of handling both structured and unstructured data. Google Workspace has witnessed substantial adoption of Duet AI by thousands of companies and over a million trusted testers.
In the third quarter, Alphabet reported consolidated revenues of $76.7 billion, marking an 11% increase in both reported and constant currency. This remarkable revenue growth is attributed to Google's Search platform. Although the total cost of revenues increased by 7% to $33.2 billion, YouTube advertising revenues reached $8 billion, registering a 12% growth, driven by brand advertising and direct response initiatives.
This latest news underscores Google's resolute dedication to advancing its AI investments and harnessing generative AI to elevate user experiences across its expansive platform.
