Alphabet’s (NASDAQ:GOOGL, GOOG) Google plans to incorporate generative artificial intelligence (AI) into its advertising business in the upcoming months to create “novel” ads based on materials made by human marketers, the Financial Times reported.
According to an internal presentation, titled “AI-powered ads 2023,” advertisers can provide “creative” content like imagery, video, and text for an ad campaign, which generative AI will “remix” to produce ads based on the target audience. It will also consider other goals like sales targets. The new technology will be embedded into Google’s Performance Max program.
Google told the Financial Times that it intends to incorporate firm guardrails that will prevent certain errors, called “hallucinations” when it launches its new generative AI features in the months ahead. The text generated by certain AI chatbots can confidently give false information, raising concerns about this emerging technology.
Like several other tech giants, Google is also focused on rolling out AI-powered tools, given the massive interest created by Microsoft (NASDAQ:MSFT)-backed OpenAI’s ChatGPT. Last month, Google launched its BARD AI chatbot for users in the U.S. and U.K. to compete with ChatGPT.
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Wall Street’s Strong Buy consensus rating for Alphabet is based on 29 unanimous Buys. The average GOOGL stock price target of $127.48 suggests 22.4% upside. Shares have risen 18% so far this year.
