Alphabet’s (NASDAQ:GOOGL) Google plans to introduce customized chatbots. According to a report from The Information, the technology giant intends to launch AI-powered chatbots inspired by celebrities and YouTube influencers. The move positions Google alongside companies like Character.ai and Meta Platforms (NASDAQ:META), which already have similar products.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Per the report, Google will leverage its large language models (LLMs) to develop these chatbots. This could let Alphabet partner with big influencers and celebrities. This, in turn, will help the tech giant benefit from their broad appeal and large online followings.
Google Prioritizes AI
Google is prioritizing investments and resources in AI technology.
The company is undergoing a restructuring program that includes job eliminations and resource reallocations to focus more on AI development. Using AI in its services is expected to boost user engagement and ad revenue for Google. Further, it will enhance operational efficiency and margins.
In Q1, Google Search and other revenues increased by 14% year-over-year to $46.2 billion. The integration of AI and its growing utilization may further enhance the company’s Search and other revenues. Moreover, the company’s Cloud segment’s revenue is growing swiftly, reflecting a growing contribution from AI.
Overall, its efforts to integrate AI and cut expenses augur well for growth.
Is Alphabet a Buy, Hold, or Sell?
Wall Street is bullish about Alphabet’s prospects. Alphabet stock has 33 Buys and five Hold recommendations for a Strong Buy consensus rating.
Alphabet stock is up about 28.5% year-to-date. The analysts’ average GOOGL stock price target is $198.50, implying 10.76% upside potential from current levels.
