Google deepens AI integration across operations

This could have an influence on earnings

Image credit: Microsoft Copilot and Canva

Google is heavily integrating AI into its operations and product development.

Over a quarter of new code at Google is now AI-generated and then reviewed by engineers, according to CEO Sundar Pichai. 

This reliance on AI aligns with Alphabet's strong third-quarter earnings, which reported $88.3 billion in revenue, with notable growth in Google Services and Google Cloud. Google Cloud revenue increased by 35% year-over-year, while Google Services rose by 13%, driven by new AI-powered features in Search, Google Meet, YouTube, and the Pixel 9 smartphone lineup.

“In Search, our new AI features are expanding what people can search for and how they search for it… In Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers and win larger deals. And YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.” Sundar Pichai