AI will help Google parent Alphabet navigate a challenging macro environment, say analysts - MarketWatch

In a note released Friday JPMorgan analyst Doug Anmuth wrote that AI is reaching "an inflection point" at Alphabet. "Amidst a challenging operating environment, we're encouraged by upcoming AI products & what feels like deeper commitment to rationalize the cost structure, though there is still some uncertainty around magnitude and timing," he wrote. See Now: Google suffered'pullback' in ad spending over holidays, Alphabet stock falls after earnings The analyst explained that AI has been integral to Alphabet's business for many years, driving search and broader ads performance, while also supporting its cloud business. "After years of heavy investments along with recent competitive pressures, Google will roll out several new AI tools over the next few months," he added, highlighting the company's efforts to layer its LaMDA chatbot conversation technology across the company's suite of products, specifically in search and in a possible standalone product. In addition to the company's efforts to deliver AI tools to app developers, Anmuth also pointed to its plans to introduce AI-powered features to Workspace and "large language models" to Gmail and Docs.