CEO Sundar Pichai reveals Google's ‘Most Important Metric' and how company is tracking it
Google CEO Sundar Pichai revealed that AI has boosted software engineering productivity by 10%, a metric the company actively tracks. Google measures this by assessing the increase in engineering capacity, in hours per week, gained through AI tools.
Google
CEO Sundar Pichai has claimed that artificial intelligence (AI) is increasing the productivity of the company's software engineers. He also noted that the Alphabet-owned tech giant is actively measuring the impact of AI on its engineers. During a recent episode of the "Lex Fridman Podcast,' Pichai explained that Google is closely observing how AI is boosting the output of its software developers. As per Pichai, it is
"the most important metric,'
and the company
'carefully measures it.'
He even mentioned that Google actively measures
'how much has our engineering velocity increased as a company due to AI?"
Pichai noted that the company currently estimates a 10% boost in engineering velocity attributed to AI.
How Google tracks AI's role in increasing productivity of its engineers
According to a report by Business Insider, a Google spokesperson explained that the company tracks AI's role in improving productivity of software developers by measuring the increase in engineering capacity created, in hours per week, through the use of AI-powered tools.
To put it simply, it's a way of measuring how much extra time engineers are gaining for using AI tools
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As for whether Google expects that 10% figure to continue rising, Pichai didn't clarify. However, he noted that agentic capabilities, where AI can take actions and make decisions more autonomously, will unlock the "next big wave."
Google has also developed its internal tools to assist engineers with coding. Last year, it launched an internal coding copilot named "Goose," trained on 25 years of Google's technical history, Business Insider previously reported.
While AI is playing a growing role, Pichai said during the podcast that Google still plans to hire more engineers next year.
'The opportunity space of what we can do is expanding too,'
he said, adding that he hopes AI will reduce some of the grunt work and free up time for more enjoyable aspects of engineering.
Meanwhile, the company is also monitoring the volume of code being generated by AI within Google, a figure which is reportedly on the rise.
At Alphabet's most recent earnings call, Pichai mentioned that more than 30% of the company's new code is now generated by AI, up from about 25% in October 2024.
Apart from Google, Microsoft UK CEO Darren Hardman said its GitHub Copilot coding assistant now writes 40% of the company's code at London Tech Week this week. He noted that this change is 'enabling us to launch more products in the last 12 months than we did in the previous three years.'
In April, Meta CEO
Mark Zuckerberg
predicted that AI could handle half of Meta's developer work within a year.
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