Google is leaning more on artificial intelligence (AI) for software development, with over a quarter of its new code now AI-generated, as CEO Sundar Pichai revealed. While engineers still review and validate this AI-driven code, the shift underscores the company’s growing reliance on AI. During Google’s Q3 2024 earnings call, Pichai highlighted AI’s integral role in the company’s expansion strategy, a shift occurring as AI reshapes the industry.
For the quarter, Alphabet, Google’s parent company, reported $88.3 billion in revenue. Google Services, including Search, brought in $76.5 billion, up by 13% year-over-year, while Google Cloud, known for offering AI-driven infrastructure, reached $11.4 billion, showing an impressive 35% annual growth.
Operating income also surged, with Google Services achieving $30.9 billion, up from $23.9 billion the previous year. Google Cloud saw even greater growth, with operating income at $1.95 billion compared to $270 million the year prior. This growth highlights the substantial profits from Google’s AI-focused services and tools.
AI now stands at the core of Google’s product suite, with new AI-powered tools integrated into Search, Cloud, and consumer products. AI features in Search are expanding search capabilities, while Google has launched “Gems,” AI-powered personalized chatbots based on its Gemini AI model for more tailored interactions.
YouTube creators can now use generative AI tools for video summaries and titles, while Google Meet has added an AI-powered note-taking feature to streamline capturing key meeting highlights. The Pixel 9 series, featuring multiple AI enhancements, has been well-received.
Despite strong financial results, Google faces regulatory challenges. The U.S. Department of Justice recently accused Google of monopolizing the search and ad markets, and the case is moving into its remedies phase. Pending further developments in the case, a potential breakup remains uncertain.
