To catch up with OpenAI, Google immediately integrated artificial intelligence into most of its tools.
But after two quarters, what are the concrete results of this strategy? How much progress has Google made thanks to AI? This was the question addressed at the company’s latest earnings conference.
This article summarizes the key points of Google’s latest financial conference. We’ll look at how Google is constantly innovating in the field of AI, and how this is strengthening its market position.
How does AI improve Alphabet’s performance?
Alphabet’s latest earnings conference call provided insights into how Google is using generative AI to evolve its flagship product, the search engine.
According to user feedback, the Generative Search Experience, which is currently in beta, is well received.
Nearly 80% of advertisers are using AI-powered ads, and further innovations are in the pipeline. Alphabet sees significant potential for improving search and advertising through advances in AI.
Alphabet, Google’s parent company, reported strong financial results for the second quarter of 2023, thanks to advances in AI and improvements to Google Search.
At Alphabet’s financial results conference, CEO Sundar Pichai highlighted the firm’s continued leadership in AI and ongoing improvements to Google Search.
It was emphasized that Alphabet is well advanced in using AI to improve its products and services. Google Search, for example, is being transformed by advanced AI capabilities.
AI innovations for search at Google
The Generative Search Experience (GSE) is one of the main innovations, made possible by large-scale language models like PaLM.
Since its launch in limited beta, initial feedback from users has been “very positive”. EGR enables Google to handle more conversational, contextual and complex queries. Search can now provide intuitive answers, going beyond simple blue links.
“User feedback [on the Search Generative Experience] has been very positive so far.It allows us to better respond to the queries that Internet users submit to us today, while paving the way for new types of questions that search can answer.”Sundar Pichai
According to Pichai, generative AI not only improves Google Search, it also strengthens Alphabet’s advertising products.
“AsAlphabet continues to innovate and improve its AI capabilities, the possibilities for more personalized, intuitive and effective search and advertising experiences continue to expand.“Sundar Pichai
Google’s advertising performance thanks to AI
Philipp Schindler, Google’s Senior Vice President and Chief Business Officer, said that nearly 80% of businesses that buy advertising on Google Search have adopted at least one of the AI-powered advertising products.
Indeed, Alphabet’s continued investment in AI and its ability to successfully integrate this technology into search and advertising suggest that AI is playing an increasingly important role in advertising.
The rise of a more conversational, contextual search that synthesizes information could benefit smaller sites with specialized, in-depth content on niche topics.
If Google can understand and summarize the content effectively, this may increase their visibility compared to larger sites that produce more general content.
In a nutshell
To conclude, Alphabet’s latest earnings conference showed how the company is leveraging AI, in particular large linguistic models to evolve Google Search and Google Ads.
Early results suggest that these innovations in generative AI will enable more intuitive and conversational interactions.