Latest news with #Overviews
Yahoo
7 days ago
- Business
- Yahoo
GOOGL Infuses AI to Boost Search Dominance: What's the Path Ahead?
Alphabet's GOOGL Google continues to dominate the Search business, handling over 5 trillion queries annually, as per Semrush. The company has been actively embedding AI, especially within Search, to enhance user experience, provide better AI-focused features and consequently improve ad performance. Google accounts for 89.66% market share, followed by Microsoft's MSFT Bing with 3.88% the recently announced second quarter of 2025, Google Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing the Zacks Consensus Estimate by 3.04% and accounted for 56.2% of total revenues. Overall queries and commercial queries on Search continued to grow year over year in the reported quarter. Alphabet is advancing visual and contextual search capabilities. The Circle to Search feature is now active on more than 300 million devices. The company is adding functionalities to help people explore complex topics and ask follow-up questions without switching apps. For instance, gamers can now use Circle to Search while playing mobile games to see an AI Overview or Overviews now reach more than 2 billion users per month and are available in over 200 countries across 40 languages. It is now driving over 10% more queries globally. Powered by Gemini 2.5, AI Overviews currently delivers the fastest AI responses in the industry. The combination of lens or Circle to Search, together with AI Overviews, is driving multimodal search usage. Google's AI-powered Search features are driving deeper engagement, with AI Mode offering advanced reasoning and multimodal responses. Users are generating queries twice as long as those in traditional searches. The launch of AI Mode in the United States and India — where it currently has more than 100 million monthly active users — is expected to drive further growth. GOOGL Faces Tough Competition in Search Market Alphabet faces stiff competition from Microsoft and Baidu is strengthening Bing with the rollout of Copilot Search, which brings the full power of Copilot's AI into the search experience. The feature delivers intelligent summaries for complex queries, helping users save time in uncovering relevant information. Microsoft's Bing is shifting from passive searching to action-oriented assistance, helping users complete real-world tasks like booking appointments, getting service details and many giant Baidu, known as the Google of China, is upgrading its Ernie-powered search engine to be smarter by adding AI, voice and image capabilities. Baidu's Search engine is now competing for user attention against social platforms and AI-native browsers, shifting focus from traditional keyword inputs to natural language queries and voice-based searches in multiple Chinese dialects. GOOGL's Share Price Performance, Valuation and Estimates Alphabet's shares have appreciated 1.5% year to date (YTD), underperforming the broader Zacks Computer and Technology sector's return of 10.7%. GOOGL's Stock Performance Image Source: Zacks Investment Research Alphabet's stock is trading at a forward 12-month Price/Sales of 6.7X compared with the industry's 5.26X. GOOGL has a Value Score of C. GOOGL Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $9.72 per share, up 1.9% over the past 30 days, suggesting 20.90% year-over-year growth. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote GOOGL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Baidu, Inc. (BIDU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-07-2025
- Business
- Yahoo
Google Search is readying the next generation for AI: Morning Brief
In case there was any thought tech giants would ease up on AI spending sprees, Alphabet (GOOG, GOOGL) threw another $10 billion into the mix just to be sure. The company's stellar quarter — flashing strength in advertising and its cloud businesses — appeared to more than justify the amped up investment, which is now set to reach $85 billion this year. But the Google parent also succeeded in advancing another urgent mission: convincing investors it can transition its search empire into an AI-infused one. AI Overviews, Google's search product that summarizes key information on a topic or question, has grown from 1.5 billion monthly users to more than 2 billion, underscoring its strong adoption. Google executives have framed its enhanced search features as an evolution of the company's core business. Along with AI Mode — an expansion of Overviews — the company says the tools are driving people to search even more. Double-digit revenue growth in search suggests AI is expanding the market. "We like the integration of AI features (AI Overviews and AI Mode) within Google Search and view these additions as important in maintaining Google Search's relevance, especially with younger users, while opening up new generative AI monetization vectors for the firm," said Malik Ahmed Khan, equity analyst at Morningstar, in a note on Thursday. The knock on Google's AI approach is that in trying to fend off a new wave of AI-powered answer engines, like those from Perplexity and OpenAI, its reinvention will cannibalize search revenues. But Google's advertising business has proven resilient, even as AI adoption has grown. "Another stable quarter for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," said Bank of America analysts Justin Post and Nitin Bansal in a note Thursday. It also helps that Google's cloud business is a force of its own. Executives said the cloud unit now touts an annual revenue run-rate of more than $50 billion, which means questions over AI monetization don't have to be answered right away. Besides, Google's AI-powered rivals aiming to disrupt the web browser also have to become advertising powerhouses to take on the search giant's dominant position. Of course, Google's race to integrate AI into the search experience has broader implications for online publishers and the way people interact with the web. Google users who are shown an AI summary are less likely to click on links to other websites than users who do not see one, according to a recent Pew Research Center report. Google users who encountered an AI summary also rarely clicked on a link in the summary itself, the study found. The findings, which were first published in May and reposted this week with additional analysis, add weight to concerns that AI-powered answer engines will steer people's attention away from the businesses, subject experts, writers, and artists that rely on Search to send people their way. And on one level, that's Google's problem too. Tearing down a successful ad model to build out an ambitious AI-centered regime could ultimately diminish the broader internet and Google's financial standing. But the company's leaders have expressed confidence they can usher in a new age of search. Whether the ecosystem Google helped create will be sacrificed in the process isn't yet answerable in a tidy box. Early returns suggest perhaps not. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-07-2025
- Business
- Yahoo
Google Search is readying the next generation for AI: Morning Brief
In case there was any thought tech giants would ease up on AI spending sprees, Alphabet (GOOG, GOOGL) threw another $10 billion into the mix just to be sure. The company's stellar quarter — flashing strength in advertising and its cloud businesses — appeared to more than justify the amped up investment, which is now set to reach $85 billion this year. But the Google parent also succeeded in advancing another urgent mission: convincing investors it can transition its search empire into an AI-infused one. AI Overviews, Google's search product that summarizes key information on a topic or question, has grown from 1.5 billion monthly users to more than 2 billion, underscoring its strong adoption. Google executives have framed its enhanced search features as an evolution of the company's core business. Along with AI Mode — an expansion of Overviews — the company says the tools are driving people to search even more. Double-digit revenue growth in search suggests AI is expanding the market. "We like the integration of AI features (AI Overviews and AI Mode) within Google Search and view these additions as important in maintaining Google Search's relevance, especially with younger users, while opening up new generative AI monetization vectors for the firm," said Malik Ahmed Khan, equity analyst at Morningstar, in a note on Thursday. The knock on Google's AI approach is that in trying to fend off a new wave of AI-powered answer engines, like those from Perplexity and OpenAI, its reinvention will cannibalize search revenues. But Google's advertising business has proven resilient, even as AI adoption has grown. "Another stable quarter for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," said Bank of America analysts Justin Post and Nitin Bansal in a note Thursday. It also helps that Google's cloud business is a force of its own. Executives said the cloud unit now touts an annual revenue run-rate of more than $50 billion, which means questions over AI monetization don't have to be answered right away. Besides, Google's AI-powered rivals aiming to disrupt the web browser also have to become advertising powerhouses to take on the search giant's dominant position. Of course, Google's race to integrate AI into the search experience has broader implications for online publishers and the way people interact with the web. Google users who are shown an AI summary are less likely to click on links to other websites than users who do not see one, according to a recent Pew Research Center report. Google users who encountered an AI summary also rarely clicked on a link in the summary itself, the study found. The findings, which were first published in May and reposted this week with additional analysis, add weight to concerns that AI-powered answer engines will steer people's attention away from the businesses, subject experts, writers, and artists that rely on Search to send people their way. And on one level, that's Google's problem too. Tearing down a successful ad model to build out an ambitious AI-centered regime could ultimately diminish the broader internet and Google's financial standing. But the company's leaders have expressed confidence they can usher in a new age of search. Whether the ecosystem Google helped create will be sacrificed in the process isn't yet answerable in a tidy box. Early returns suggest perhaps not. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban.
Yahoo
25-07-2025
- Business
- Yahoo
Google Search is readying the next generation for AI: Morning Brief
In case there was any thought tech giants would ease up on AI spending sprees, Alphabet (GOOG, GOOGL) threw another $10 billion into the mix just to be sure. The company's stellar quarter — flashing strength in advertising and its cloud businesses — appeared to more than justify the amped up investment, which is now set to reach $85 billion this year. But the Google parent also succeeded in advancing another urgent mission: convincing investors it can transition its search empire into an AI-infused one. AI Overviews, Google's search product that summarizes key information on a topic or question, has grown from 1.5 billion monthly users to more than 2 billion, underscoring its strong adoption. Google executives have framed its enhanced search features as an evolution of the company's core business. Along with AI Mode — an expansion of Overviews — the company says the tools are driving people to search even more. Double-digit revenue growth in search suggests AI is expanding the market. "We like the integration of AI features (AI Overviews and AI Mode) within Google Search and view these additions as important in maintaining Google Search's relevance, especially with younger users, while opening up new generative AI monetization vectors for the firm," said Malik Ahmed Khan, equity analyst at Morningstar, in a note on Thursday. The knock on Google's AI approach is that in trying to fend off a new wave of AI-powered answer engines, like those from Perplexity and OpenAI, its reinvention will cannibalize search revenues. But Google's advertising business has proven resilient, even as AI adoption has grown. "Another stable quarter for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," said Bank of America analysts Justin Post and Nitin Bansal in a note Thursday. It also helps that Google's cloud business is a force of its own. Executives said the cloud unit now touts an annual revenue run-rate of more than $50 billion, which means questions over AI monetization don't have to be answered right away. Besides, Google's AI-powered rivals aiming to disrupt the web browser also have to become advertising powerhouses to take on the search giant's dominant position. Of course, Google's race to integrate AI into the search experience has broader implications for online publishers and the way people interact with the web. Google users who are shown an AI summary are less likely to click on links to other websites than users who do not see one, according to a recent Pew Research Center report. Google users who encountered an AI summary also rarely clicked on a link in the summary itself, the study found. The findings, which were first published in May and reposted this week with additional analysis, add weight to concerns that AI-powered answer engines will steer people's attention away from the businesses, subject experts, writers, and artists that rely on Search to send people their way. And on one level, that's Google's problem too. Tearing down a successful ad model to build out an ambitious AI-centered regime could ultimately diminish the broader internet and Google's financial standing. But the company's leaders have expressed confidence they can usher in a new age of search. Whether the ecosystem Google helped create will be sacrificed in the process isn't yet answerable in a tidy box. Early returns suggest perhaps not. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hindu
07-07-2025
- Business
- The Hindu
Why has Google's ‘AI overviews' sparked an antitrust firestorm in the EU?
The story so far: Google's AI-powered summaries, known as AI Overviews, are facing a formal antitrust complaint from a coalition of independent publishers in the European Union, as per a report by Reuters. Their complaint, lodged with the European Commission, alleges that Alphabet's Google is abusing its market dominance, siphoning traffic and revenue from publishers, and threatening the viability of independent journalism. The feature, rolled out in over 100 countries, represents Google's major strategic bet on integrating generative AI directly into its core search experience. However, this move has ignited fierce opposition from content creators who claim it undermines the very ecosystem that Google's search engine relies on. What is Google AI Overviews? AI Overviews are AI-generated summaries that appear at the top of Google's search results page, positioned above the traditional list of blue links. Their purpose is to provide users with a quick, synthesised answer to their query, drawing information from multiple web sources. These overviews can range from a few paragraphs to lists or tables and often include links to the source websites within the generated text. First introduced as an experiment called Search Generative Experience (SGE) in May 2023, the feature is now a core part of Google Search in many regions. How do AI Overviews work? When a user enters a search query, Google's systems determine if generative AI could be particularly helpful in providing a comprehensive answer. If so, it employs a customised version of its advanced AI model, Gemini, to process the request. The system doesn't rely solely on the AI's pre-existing knowledge. Instead, it uses a technique called Retrieval-Augmented Generation (RAG), where it actively fetches and analyses relevant information from its web index. The AI then synthesises this information into a coherent summary. Google states that these overviews are designed to be backed up by top web results, and include links to allow users to 'dig deeper.' Why are publishers accusing Google? The crux of the dispute lies in how these AI-generated answers impact the businesses that create the original content. The Independent Publishers Alliance, alongside groups like the Movement for an Open Web and the legal advocacy non-profit Foxglove, argues that this new feature hurts competition and is causing 'serious irreparable harm,' as per the Reuters report citing documents it has seen. The publishers' key complaints stem from the concern that their content will be disincentivised because of Google's AI feature. By providing a direct summary at the top of the page, users have less incentive to click through to their websites. This leads to a significant drop in traffic, which in turn slashes advertising revenue and subscriber numbers, the lifeblood of many online publications. Their complaint alleges that Google is 'misusing web content' by scraping information from publisher sites to train its AI models and generate summaries without fair compensation. Since May 2024, Google has also begun placing ads within these AI Overviews, meaning it is directly monetising content that publishers have invested in creating. The complaint highlights that there is no way to opt out of having their content used for AI Overviews without also being removed from Google's main search results. Given Google's dominance in search, becoming invisible on the platform is not a feasible option for any publisher. How are regulators getting involved? The formal complaint, per the report, was filed with both the European Commission and the U.K.'s Competition and Markets Authority (CMA). The publishers are asking for 'interim measures' to stop Google from using the feature while the case is investigated, to prevent further damage. While the European Commission has not commented publicly on the complaint, it has previously investigated Google for other anticompetitive practices. The U.K.'s CMA has confirmed receipt of the complaint and noted that AI Overviews fall within the scope of its ongoing work to designate Google with a 'strategic market status.' This designation would grant the CMA more power to regulate Google's conduct, potentially including rules that give publishers more control over how their content is used in AI summaries without having to be de-listed from search entirely. How is Google defending AI Overviews? Google has pushed back against the publishers' claims. A company spokesperson stated that 'New AI experiences in Search enable people to ask even more questions, which creates new opportunities for content and businesses to be discovered.' The company maintains that it sends billions of clicks to websites every day and that traffic fluctuations can be due to many factors, such as seasonal interest and regular algorithm updates. Google also claims that clicks from pages with AI Overviews are of 'higher quality,' meaning users are more likely to stay on the sites they visit.
