Alphabet (GOOGL) Adds Generative AI Features to NotebookLM
Alphabet’s GOOGL Google is bolstering its AI-powered note-taking app, NotebookLM, by adding an array of new features before making it available to all adult users in the United States.
Notably, NotebookLM uses Google's Gemini Pro language model to aid in document understanding and reasoning. It generates summaries and suggests follow-up questions, focusing on the content of the documents.
Further, it introduced new tools for organizing curated notes into structured writing projects, allowing users to create scripts, email newsletters or marketing plans from their notes.
Additionally, NotebookLM now offers actions based on current tasks, such as summarizing selected passages or refining prose in writing and suggesting related ideas from sources based on what's been written so far.
Also, Google has made minor improvements to NotebookLM, including creating separate notes for notes and allowing users to access original quotes in chat responses or saved notes.
These useful attributes are expected to bolster the adoption rate of NotebookLM in the days ahead.
We note that the latest move has added strength to the company’s Google Services segment, which constitutes the majority of total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
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Stiff Competition
We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI.
Microsoft’s integration of its newly introduced in-house AI system, Copilot, into its note-taking app - Microsoft OneNote, remains noteworthy.
This new update enhances the appearance of digital notebooks, enables content organization, adjusts formatting, generates summaries and highlights key points using your own words, offering an edge to the company’s note-taking app.
Similarly, Apple is set to launch the Journal app, which uses AI to gather evidence from daily activities and mindset.
Further, Apple's Journal app allows users to write entries and insert content, with local storage on iPhones and iCloud backups. It not only provides data suggestions but also prompts users to write about their love for doing something and why it brings joy.
Growing Focus on Generative AI
The latest move is in sync with Alpahbet’s deepening focus on integrating its generative AI capabilities into its products and services.
Notably, Google is set to add an AI feature called "Help me create a list" to its Keep Notes app for Android, assisting users in generating lists for various tasks, including planning, packing, grocery shopping and task completion.
Further, Google recently introduced its new, advanced, powerful, large language model, namely Gemini. It is available in three different sizes: Gemini Ultra, which is its largest and most capable one, Gemini Pro, which is designed to offer scalability across various applications, and Gemini Nano, which is designed for specific tasks and mobile devices.
We believe that all the above-mentioned endeavors will likely strengthen Alphabet’s presence in the booming generative AI space.
Per an Allied Market Research report, the global generative AI market is expected to reach $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.
Strength in the promising generative AI market will likely aid this Zacks Rank #3 (Hold) company in instilling investors’ optimism in the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alphabet has gained 54.2% on a year-to-date basis compared with the industry’s growth of 53.8%.
Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly.
Notably, Adobe introduced new Firefly Models, including Image 2 and Vector, to improve imaging creative control and quality, enabling instant template design in Adobe Express.
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