Alphabet's (GOOGL) Google Unveils AI Features for YouTube
Alphabet’s GOOGL Google has added artificial-intelligence (AI)-powered features to YouTube for video creators.
One of the features called Dream Screen, a generative AI-powered tool, adds video backgrounds to short-form videos or Shorts seamlessly. Also, the company introduced the latest production tools for editing short and long-form videos quickly.
Further, Google launched YouTube Create, a mobile app designed to streamline video production for creators, offering AI-enabled editing, captioning, voiceover, filters and royalty-free music features.
Apart from this, YouTube plans to offer creators AI-powered insights, automatic video dubbing capability and assistance in finding music and soundtracks beyond creation.
The above feature additions is likely to help the company gain strong traction among content creators, which in turn will boost YouTube’s user base. This will likely aid the Google Services segment’s performance, which accounted for 88.8% of total revenues in the second-quarter 2023.
Additionally, revenues from the Google Services business in the second quarter increased 5.5% year over year to $66.3 billion.
Our model estimate for 2023 revenues of the underlined segment is pegged at $2.67 billion, up 5.3% year over year.
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Growing Efforts in Generative AI
We mark the latest move as Alphabet’s growing efforts to integrate generative AI into its products and services.
Apart from the latest generative AI features, Google recently announced the general availability of its generative-AI-backed helper, Duet AI, for all Google Workspace apps, helping users to create visual aids, assist in meetings and even attend for them, at a no-cost trial.
Alphabet is also set to release its conversational multimodal AI software, Gemini, comprising extensive language models that offer chatbots optimization, text summarization, content generation, email drafts, music lyrics and news articles, enabling users to create personalized content.
Further, Google enhanced the model of its chatbot, Bard, by integrating it with Google apps, improving Google it feature and introducing new features like Bard Extensions in English, double-checking responses, uploading images with Lens, obtaining Search images and modifying responses to more than 40 languages.
Additionally, Google integrated experimental generative AI features into its search engine, known as the search generative experience, which generates detailed summaries based on Internet and digital sources.
We believe that the abovementioned endeavors are likely to 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, exhibiting a CAGR of 47.5% between 2023 and 2030.
Growing prospects in the promising generative AI market are expected aid Alphabet in winning investors’ confidence in the near term.
Alphabet has gained 47.6% on a year-to-date basis compared with the industry’s growth of 45.8%.
Intensifying Competition
We note that the latest move will allow Alphabet, which currently carries a Zacks Rank #3 (Hold), to compete well with some notable industry players like Microsoft MSFT, Meta Platforms META and Amazon AMZN, which are also making continuous efforts to boost its generative AI efforts.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft recently announced OpenAI's DALL-E 3 AI image-synthesis model, which is fully integrated with ChatGPT and challenges previous models by rendering images with complex descriptions and handling in-image text generation.
Further, MSFT plans to incorporate the DALL-E 3 text-to-image model into Bing Chat, enabling users to create images directly in a chat.
Meanwhile, Meta is set to introduce AI chatbots called Gen AI Personas, with unique personalities to appeal to young users.
Additionally, Meta introduced the Shepherd large language model (LLM) process to combat generative AI's inaccurate information, analyzing responses from other LLMs to provide suggestions and refinements.
Amazon, which is riding on its AI-powered solution Amazon Bedrock, recently announced the integration of Redis Enterprise Cloud’s vector database capabilities with Bedrock, allowing customers to streamline application development by utilizing a fully managed and high-performance database and facilitating easy API usage of leading foundation models (FMs).
Further, AMZN partnered with Anthropic to accelerate the development of Anthropic's FMs, enabling Amazon Web Services’ customers to access these models through Amazon Bedrock, enhancing existing applications and creating new customer experiences.
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