Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) Google recently unveiled an AI support assistant, enhancing its generative AI capabilities for virtual assistance.

Notably, the new support assistant allows users to chat with it to find answers and solve account issues, delivering a chatbot-like experience.

The chat window allows users to expand and ask questions, with the option to leave a thumb-up or down, view answer sources, and suggest follow-up questions. However, responses are not instantaneous and take a few seconds, and follow-up questions may not work.

We note that the latest move will likely aid Google in further penetrating the booming intelligent virtual assistant market.

Per the Grand View Research report, the global intelligent virtual assistant market size will witness a CAGR of 24.3% between 2023 and 2030.

Stiff Competition

The latest move is likely to aid Google’s competitive position against peers like Apple (AAPL Quick QuoteAAPL - Free Report) and Amazon (AMZN Quick QuoteAMZN - Free Report) , which are also making continuous efforts to integrate generative AI capabilities into their virtual assistants.

Reportedly, Apple is working to add its AI-powered large language model Ajax GPT into its voice assistant Siri.

Also, Apple increased its AI research and development budget, focusing on creating conversational chatbot features for Siri.

Meanwhile, Amazon announced generative AI capabilities for its virtual assistant Alexa, optimizing voice interactions, real-time information, smart home control, and entertainment.

Amazon also introduced a new generative AI update, which will allow Alexa to resume conversations without a wake word, respond quickly, learn user preferences, field follow-up questions, change tone, and even offer opinions on Oscar-winning movies.

Generative AI Holds Promise

We mark the latest move as part of Alphabet’s growing efforts to integrate generative AI capabilities into its products and services.

Notably, Google launched MedLM, a family of generative AI models intended for the healthcare industry. MedLM, currently available to Vertex AI customers, includes two models offering medical documentation testing, drug development research and chatbot provider identification.

Further, the company unveiled Gemini 1.0, its next-generation foundation model, which can understand, code, and combine various media, enhancing reasoning and coding capabilities.

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

All the above-mentioned endeavors will likely strengthen Alphabet’s presence in the booming generative AI space.

Per an Allied Market Research report, the global generative AI market is expected to reach $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.

Strength in the promising generative AI market will likely aid the Zacks Rank #3 (Hold) company to strengthen its overall financial performance in the upcoming period and instill investors’ optimism in the stock.

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

Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.

Alphabet has gained 56.8% on a year-to-date basis compared with the industry’s growth of 56.3%.

Moreover, growing generative AI capabilities position Alphabet well to compete with Microsoft (MSFT Quick QuoteMSFT - Free Report) , which is riding on the success of OpenAI's DALL-E 3 AI image-synthesis model that enhances complex descriptions and text generation.

In addition, Microsoft integrated Bing with DALL-E 3, improving renderings for details like fingers, eyes, and shadows and enhancing Bing Chat's search query capabilities by using users' previous chats for personalized responses.