Alphabet’s GOOGL Google is leaving no stone unturned to expand its presence in the generative AI space on the heels of search capabilities.
This is evident from Google’s recent expansion of its AI-powered Search Generative Experience (SGE) across 120 countries in a bid to boost its AI-powered conversational search feature globally.
Notably, Google’s new announcement comes with feature updates like supporting four additional languages, namely Spanish, Portuguese, Korean and Indonesian.
Additionally, Google announced several other SGE updates, enabling users to ask follow-up questions directly on search results pages and allowing them to view prior queries, search results and search ads in dedicated slots.
Further, it will also allow users to select the appropriate meaning for phrases with multiple possible meanings and specify the gender for a specific word.
These endeavors will likely boost traffic on the company’s search platform.
Alphabet Inc. Price and Consensus
Google remains well poised to capitalize on the immense prospects present in the booming generative AI market.
Per a Fortune Business Insights report, the global generative AI market size is expected to hit $43.87 billion in 2023 and reach $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.
Strength in the promising generative AI market will likely aid Alphabet to strengthen its overall financial performance in the upcoming period and instill investor optimism in the stock.
The Zacks Consensus Estimate for 2023 total revenues stands at $254.67 billion, indicating growth of 8.9% from 2022.
Notably, Alphabet has gained 50.3% on a year-to-date basis compared with the industry’s growth of 48.9%.
Moreover, the latest announcement is in sync with Alphabet’s growing focus on strengthening its search business.
Apart from the underlined efforts, Google recently introduced new updates to SGE, namely alternate drafts and image generation, enabling the output of various writing types and allowing users to specify image types and receive four results in a conversational experience, which can be downloaded as .png files or edited.
Additionally, Google enhanced several other SGE capabilities, including AI-powered summaries, term definitions, coding improvements, and travel and product search features, among other things.
All these initiatives will likely aid the performance of the company’s search business.
In the third-quarter 2023, search revenues from Google-owned sites increased 11.3% year over year to $44.03 billion. The Zacks Consensus Estimate for fourth-quarter 2023 Google Search revenues is pegged at $47.7 billion, indicating growth of 12% from the year-ago quarter.
The latest move is likely to aid this Zacks Rank #3 (Hold) company to strengthen its competitive position against some notable industry players like Microsoft MSFT, Meta Platforms META and Adobe ADBE, which are also making continuous efforts to enhance their customer base for generative AI-powered products and services.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft is riding on the success of OpenAI’s AI-powered chatbot experience, Bing Chat.
Notably, it unveiled a new feature in Bing Chat, allowing users to export AI-generated data to Excel for easier access.
Moreover, Microsoft introduced a “rewrite” button in Bing, which allows users to edit a message in a conversation instead of copying and editing manually.
Meanwhile, Adobe is enjoying the growing momentum of its AI image generator, Adobe Firefly.
Further, it unveiled AI-powered Generative Fill, Text to Template, Translate, and Drawing and Painting features in Adobe Express, accelerating "Creativity for All" by making it fast, easy and fun for all skill levels.
Meta Platforms, on the other hand, launched an open-source AI tool called "AudioCraft," which can generate music and audio based on text prompts using three models.
Further, its release of CM3leon, a multimodal model that performs both text-to-image and image-to-text generation, remains noteworthy.
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