Some have accused the tech giants of blowing AI smoke on earnings calls—touting the supposed benefits of massive capital expenditures without reporting any tangible impact on productivity or savings. Google-parent Alphabet, however, says it is making big progress on both fronts. More than a quarter of all new code at the search giant is now generated by AI, CEO Sundar Pichai said during the company’s third-quarter earnings call on Tuesday. (View Highlight)
That’s only a small part of how Alphabet executives say the company’s long-running AI efforts are beginning to benefit its balance sheet. The company says its impressive Q3 performance—earnings beat analyst predictions—was driven, in part, by its cloud business. The segment generated quarterly revenues of $11.4 billion, up 35% from the same period last year, as Pinchai said artificial intelligence offerings helped attract new enterprise customers and win larger deals. (View Highlight)
Pichai repeatedly touted the success of companies using various AI tools running on Google’s Gemini models, which he said has helped drive 30% deeper product adoption among existing customers. (View Highlight)
“We are uniquely positioned to lead in the era of AI because of our differentiated full stack approach to AI innovation,” he said, “and we are now seeing this operate at scale.” (View Highlight)
“AI really supercharges search,” chief business officer Philipp Schindler said on the call. “Our new AI-powered features make searches more helpful, and we continue to see great feedback, particularly from younger users.” (View Highlight)
