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Alphabet (GOOGL) to Aid Chrome Users With New AI Feature

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Alphabet’s (GOOGL - Free Report) Google is leaving no stone unturned to bolster its products and services on the back of generative AI-induced capabilities.

Notably, Google is set to introduce AI-powered “Help me write” feature to Chrome for Desktop use.

Further, this new AI feature will be available in Chrome's autofill popup, providing context on text content rather than relying solely on the prompt.

Moreover, the new feature can adjust its writing style, including "Shorten" or "Elaborate" options, as well as "Casual" or "Formal" options, with fewer options than Docs or Messages.

Alphabet is expected to gain solid traction across Chrome users on the back of its latest move.

Enhancing Google Services With Generative AI

Apart from the latest move, Google is set to add an AI feature called "Help me create a list" to its Keep Notes app for Android, assisting users in generating lists for various tasks, including planning, packing, grocery shopping, and task completion.

Further, Google introduced AI-powered features to YouTube, including Dream Screen for seamless video backgrounds, production tools for quick editing, and YouTube Create, a mobile app for AI-enabled video production.

We believe that all the above-mentioned endeavors will likely strengthen Alphabet’s presence in the booming generative AI space.

Per a Fortune Business Insights report, the global generative AI market size is expected to reach $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.

Strength in the promising generative AI market will likely aid the company in instilling investors’ optimism in the stock.

Alphabet has gained 55.2% on a year-to-date basis compared with the industry’s rise of 54.7%.

Moreover, the aforementioned launches are expected to aid the Google Services segment’s performance, which constitutes the majority of total revenues.

In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.

Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.

Competition Scenario

We note that this announcement will allow this Zacks Rank #3 (Hold) to compete well with some notable industry peers like Microsoft (MSFT - Free Report) , Adobe (ADBE - Free Report) , and Meta Platforms (META - Free Report) , who are also expanding themselves in the generative AI space.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, Microsoft announced OpenAI's DALL-E 3 AI image-synthesis model, fully integrated with ChatGPT, which challenges previous models by rendering images with complex descriptions and handling in-image text generation.

In addition, Microsoft’s integration of OpenAI’s next-generation large language model — GPT-4 — into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains noteworthy.

Meanwhile, Adobe launched Photoshop for the web, incorporating Firefly-powered AI tools like generative fill and generative expand, leveraging generative AI capabilities into its products.

Further, Adobe introduced new Firefly Models, including Image 2 and Vector, to improve imaging creative control and quality, enabling instant template design in Adobe Express.

Meta Platforms, on the other hand, launched an open-source AI tool called "AudioCraft," which can generate music and audio based on text prompts using three models.

Further, its release of CM3leon, a multimodal model that performs both text-to-image and image-to-text generation, is a notable addition to the generative AI space.

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