Alphabet (GOOGL) Boosts Virtual Assistant Capabilities With Bard
Alphabet’s GOOGL Google is leaving no stone unturned to bolster its generative AI capabilities on the back of its chatbot, Bard.
This is evident from its latest announcement where Google revealed its plans to launch Assistant with Bard, infusing Bard AI technology to its virtual assistant.
Reportedly, the new AI enhancement in Google Assistant will assist users in tasks like trip planning and email management, offering personalized reasoning and generative functions.
Upon integration of Assistant with Bard into mobile phone cameras and microphones, users will be able to input images or audio for query assistance.
The new offering, initially to be launched in a test phase, is set to be made available to the general public in the coming months.
We note that the latest move will likely aid Google in further penetrating the booming virtual assistant market.
A Technavio report estimates the global virtual assistant market share to increase $2.69 billion, witnessing a CAGR of 37.3% between 2022 and 2027.
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Stiff Competition
The latest move is likely to aid Google’s competitive position against peers like Apple AAPL and Amazon AMZN, which are also making continuous efforts to integrate generative AI capabilities into their virtual assistants.
Reportedly, Apple is working to add its AI-powered large language model (LLM) Ajax GPT into its voice assistant Siri.
Also, Apple increased its AI research and development budget, focusing on creating conversational chatbot features for Siri.
Meanwhile, Amazon announced a generative AI update to its virtual assistant, Alexa.
Notably, the new update will allow Alexa to resume conversations without a wake word, respond quickly, learn user preferences, field follow-up questions, change tone and even offer opinions on Oscar-winning movies.
Growing Focus on Generative AI
We note that the latest move is in sync with GOOGL’s efforts to integrate generative AI capabilities into its offerings.
Notably, Google introduced AI-powered features to YouTube, including Dream Screen for seamless video backgrounds, production tools for editing short and long-form videos, and YouTube Create for AI-enabled editing, captioning, voiceover, filters and royalty-free music.
Further, Google launched Duet AI, a generative-AI-backed helper for Gmail, Drive and Docs, available for organizations using Google Workspace, offering meeting assistance, document summarizer and personalization for Gmail's smart replies.
Additionally, GOOGL is also set to release its conversational AI software Gemini, comprising extensive language models that offer chatbot optimization, text summarization, content generation, email drafts, music lyrics and news articles, enabling users to create personalized content.
Moreover, we believe that all the above-mentioned endeavors will likely strengthen Alphabet’s presence in the booming generative AI space.
Per a Fortune Business Insights report, the global generative AI market size is expected to hit $43.87 billion in 2023 and reach $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.
Strength in the promising generative AI market will likely aid this Zacks Rank #3 (Hold) company to strengthen its overall financial performance in the upcoming period and instill investor optimism in the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our model estimate for 2023 total revenues stands at $300.45 billion, indicating growth of 6.2% from 2022.
Notably, Alphabet has gained 55.9% on a year-to-date basis compared with the industry’s growth of 53.5%.
Moreover, growing generative AI capabilities position Alphabet well to compete with Microsoft MSFT, which has taken the world by storm on the back of ChatGPT.
In addition, Microsoft’s integration of OpenAI’s next-generation LLM — GPT-4 — into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains noteworthy.
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