Alphabet's Google recently held its annual I/O developer conference, unveiling significant advancements in artificial intelligence (AI) as it strives to address concerns over its business outlook. The event, held in Mountain View, California, comes as Google's dominance in internet information organization and retrieval faces new threats from the rise of generative AI.
Google has been working to catch up with competitors like OpenAI, backed by Microsoft, which gained attention with ChatGPT. Google executives, including CEO Sundar Pichai, highlighted their Gemini AI models, claiming they outperform rivals like OpenAI and Meta. Investors are now closely watching how Google adjusts its search ad business, which is crucial to its projected $350 billion revenue in 2024, as consumer use of AI chatbots grows.
Earlier this month, Alphabet's market value dropped by $150 billion in a single day after an Apple executive testified in an antitrust case that AI products led to a decrease in search volume on Apple's Safari browser. Analysts have since reevaluated Google's search market share, traditionally around 90%, suggesting it could drop to 65%-70% when accounting for AI chatbot usage. Legal challenges, including U.S. Department of Justice antitrust cases, could further impact Google's market position.
