New Alphabet Initiative Increases Access to Creative AI


Alphabet’s (NASDAQ:GOOGL) Google Cloud is expanding its consulting services to support generative AI efforts.

Google Cloud’s new solutions include advice and tools to assist businesses in implementing generative AI techniques.

Furthermore, these solutions are intended to assist companies in increasing automation in their company operations by generating content and summarizing data using the power of AI.

We believe the current approach will help Google achieve traction with clients in this data-driven environment where generative AI has carved out its own niche.

This is likely to boost the performance of Google Cloud, which has become one of Alphabet’s primary growth drivers. This, in turn, will boost investor confidence in the stock.

Google Cloud revenues increased 28% year on year to $7.45 billion in the first quarter of 2023, accounting for 10.7% of total revenues.

Notably, Google stock has gained 38.4% year to date, beating the industry’s 37.7% increase.

Advances in Generative AI

Google’s recent step demonstrates the company’s advancement in the field of generative AI. It made its first push into the field earlier this year when it unveiled Bard, its chatbot.

Notably, Bard is Google’s scathing answer to ChatGPT, a chatbot developed by Microsoft (NASDAQ:MSFT)-backed firm OpenAI that has taken the world by storm.

Furthermore, Google’s expanding generative AI efforts are assisting clientele expansion. Mayo Clinic and Booking Holdings (NYSE:BKNG) recently chose its generative AI solutions.

Priceline, a subsidiary of Booking Holdings, plans to use Google’s generative AI capabilities throughout both customer-facing and internal operations.

Priceline is using Google Cloud’s Generative AI App Builder to create a generative AI-powered travel assistant chatbot. This chatbot, which will be available this summer, is designed to assist clients in many stages of their travel planning and booking journeys through a conversational mode.

Given these characteristics, we believe Google is well-positioned to benefit from the generative AI market’s growth possibilities.

According to Grand View Research, the market is expected to reach $109.4 billion by 2030, with a CAGR of 34.6% between 2022 and 2030.

Scenario of Competition

With the new consulting services, Alphabet steps up its game against Microsoft and Amazon (NASDAQ:AMZN), both of which are working hard to improve their generative AI capabilities.

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About the author: Stephanie Bédard-Châteauneuf has over four years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on consumer stocks, cannabis stocks, tech stocks, and personal finance. She has an MBA in finance.