Will Google be a winning horse?

Generative artificial intelligence (AI) is on the lips of Wall Street investors. The commotion accelerates to the point where the entities like it American bank They consider that we are facing the birth of a new bubble or “bubble baby” as described in their reports. A bullish frenzy drove him into the markets Nvidia, Microsoft, Amazon, Meta or Alphabet. All of them are showing really amazing behavior in the markets since the beginning of the year.

Among all that, you always have to know how to distinguish between smoke and real value. This always happens when there is an overreaction in the stock market. The moment a file exists overheating phaseIt is necessary to note whether the multiples at which the company is trading are justified. even more when The future success of a still unknown technology like artificial intelligence is starting to wane.

Being ahead of the turmoil is what the big companies on Wall Street look for. This is the situation Google – a subsidiary of the Alphabet conglomerate, which is accelerating all its operations so as not to emerge as losers in the battle of generative artificial intelligence, but rather the opposite.

On his last offer he seems to have received It is preferred by many investment banks and operatorsAmong them is JP Morgan, one of the giants of the market. In a recent report, the American entity revealed the great potential that the Mountain View-based technology company has, due to the great commitment it makes to this technology.

“Google I did exactly what I needed to do in your I/O presentation: Show that you’re making real progress reimagining search and other products with generative AI, and so get started restore part affiliate The narrative of artificial intelligence that Microsoft has picked up in recent monthshe explains.

Not all of the initial improvements to Google’s products are revolutionary or immediately available, experts say, but they do show the company’s rapid pace of innovation in putting technology-based products into the hands of users and businesses. Generative Artificial Intelligence (GAI).

According to JP Morgan, the most important thing is that Google has 15 products with over 500 million users and 6 products with over 2 billion users.indicating that the company’s initiatives will see wide adoption beyond mainstream research, in areas such as Gmail, Maps, Photos, and more.

In addition, Bard, Google’s first GAI search platform, is now fully operational PaLM 2 is open to 180 countries. Their introduction in February this year seemed hasty to us and we believe it did little to mitigate the abundance of ChatGPT / Generative AI, although recent announcements have been a bit more thoughtful and polished, and we believe management has shown with Succeed in Bard’s capabilities when combined with the latest technology, Google’s product portfolio and partner ecosystem,” the investment bank delves into.

Commitment to generative AI

as context, Google has completely ported Bard to PaLM 2, The company’s next-generation language model has been rolled out in more than 180 countries in English and the addition of Japanese and Korean, with 40 more languages ​​to come. The company also added export options, and announced partnerships from them Adobe Fireflywhich will be integrated into Bard, and more importantly, it has linked existing Google products to Bard, incl Lens, Docs, Drive, Gmail, Maps, and more.

“While there is a lot of work ahead, we feel more confident in the company after a difficult few months for Google Accelerate product innovation It is well positioned to capture the critical reversal in generative AI (…) which is why we feel it is time to overweight its shares in the stock market with a $121 price target, the North American entity analyzes.

And not only that, but JPMorgan He also likes the new search experience that artificial intelligence can bring, according to Google’s roadmap. It shows how the updated experience can remove friction points and remove more work from the traditional search experience.

Importantly, the company has integrated existing monetization capabilities, including search ads and the shopping experience powered by its Shopping Scheme, which contains 35 billion product listings of over 1.8 billion of the lists that are updated every hour, “the experts emphasize.

the The new search experience will be available to selected users within the Google Labs Experiments program, though it hasn’t been decided when it will be available to a wider audience. Also, in another blog post, Google provided more details about the ad experience within AI formative search.

experience in Research laboratories are called generative research experimentwhich will be available in the US in the coming weeks, along with more details on AI investments for advertisers, shared at the annual event. Google marketing this week.