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Alphabet (GOOGL) Boosts Focus on Retailers With New AI Tools
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Alphabet’s (GOOGL - Free Report) Google has unveiled generative AI solutions in a bid to expand its reach to various retailers.
These tools are designed to help retailers deliver enhanced shopping experiences to customers. This way, the retailers will be able to expand their customer reach, which, in turn, will boost their sales.
The latest announcement comes ahead of the National Retail Federation's annual conference, which will be held from Jan 13 to Jan 17 in New York.
Thus, it is marked as a significant step for Google to gain a strong footprint in the retail industry. It is also experiencing a growing proliferation of generative AI, like other industries. The increasing number of use cases in the retail industry remains noteworthy.
One of these tools is a chatbot, namely Conversational Commerce Solution, which features generative AI-powered virtual agents that can be integrated into retailers’ websites and mobile apps.
The tool is based on Google’s large language models (“LLMs”), PaLM and Imagen, which enable it to create and generate product descriptions, metadata and categorization suggestions automatically.
This way, retailers will be able to offer product recommendations based on shoppers’ preferences via chats between the virtual agent and customers. Also, they will be able to generate new product images from existing ones.
The company also introduced a new LLM feature, which is meant to improve product searches.
The new tools line up also includes solutions that are designed to strengthen retailers’ customer service systems and product cataloging processes.
Coming to offline retail, the company announced a managed self-contained hardware tool called Google Distributed Cloud Edge, which is specifically for stores like convenience marts, gas stations, grocery shops and even casual restaurants. The tool helps these stores reduce IT costs and resource investments.
With all these tools, Alphabet is expected to gain solid momentum among various retailers, which in turn will contribute well to its financial performance.
The Zacks Consensus Estimate for 2024 revenues is pegged at $283.34 billion, indicating growth of 11.2% year over year.
The same for 2024 earnings is pinned at $6.74 per share, indicating growth of 15.6% year over year. The figure has moved north by 0.7% in the past 30 days.
In addition to the retail prospects, the latest move is in sync with Alphabet’s growing endeavors to strengthen its generative AI offerings, which in turn are expected to aid it in capitalizing on the growth prospects present in the booming generative AI space.
Per an Allied Market Research report, the global generative AI market’s value is likely to hit $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.
Competitive Scenario
Apart from the latest move, Alphabet’s introduction of a generative AI-backed online shopping feature, which allows users to try on clothes virtually, is a positive.
The feature helps customers understand how an apparel item will look on them, as it allows them to try clothes ranging from XXS to 4XL sizes. Further, it is designed to generate lifelike images by considering how a particular fabric stretches and wrinkles when worn.
The company’s expanding, technology-driven offerings in the retail industry are expected to stiffen the competition for e-commerce players like Amazon (AMZN - Free Report) , eBay (EBAY - Free Report) and Shopify (SHOP - Free Report) that are also making concerted efforts to bolster AI-backed retail capabilities as well as solutions for other retailers.
Amazon’s unveiling of generative AI-powered tools for sellers remains noteworthy. These tools, which are based on using LLM, are designed to aid sellers in generating good product descriptions, including titles and other listing details. With the new tools, sellers can also add or update their existing product descriptions.
eBay offers an AI tool for marketplace sellers that can create a product listing by automatically generating a title, description and information like product release date, category, subcategory, list price and shipping cost from a single photo.
The photo-to-listing AI tool addresses the "cold start" issue experienced by first-time sellers by removing the need to enter extensive information for competitive listings.
Meanwhile, Shopify Magic, Shopify’s newly launched AI tool, comes with the added feature of AI-generated product descriptions with a built-in wordsmith in the merchant’s admin.
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Alphabet (GOOGL) Boosts Focus on Retailers With New AI Tools
Alphabet’s (GOOGL - Free Report) Google has unveiled generative AI solutions in a bid to expand its reach to various retailers.
These tools are designed to help retailers deliver enhanced shopping experiences to customers. This way, the retailers will be able to expand their customer reach, which, in turn, will boost their sales.
The latest announcement comes ahead of the National Retail Federation's annual conference, which will be held from Jan 13 to Jan 17 in New York.
Thus, it is marked as a significant step for Google to gain a strong footprint in the retail industry. It is also experiencing a growing proliferation of generative AI, like other industries. The increasing number of use cases in the retail industry remains noteworthy.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
More on the New Tools
One of these tools is a chatbot, namely Conversational Commerce Solution, which features generative AI-powered virtual agents that can be integrated into retailers’ websites and mobile apps.
The tool is based on Google’s large language models (“LLMs”), PaLM and Imagen, which enable it to create and generate product descriptions, metadata and categorization suggestions automatically.
This way, retailers will be able to offer product recommendations based on shoppers’ preferences via chats between the virtual agent and customers. Also, they will be able to generate new product images from existing ones.
The company also introduced a new LLM feature, which is meant to improve product searches.
The new tools line up also includes solutions that are designed to strengthen retailers’ customer service systems and product cataloging processes.
Coming to offline retail, the company announced a managed self-contained hardware tool called Google Distributed Cloud Edge, which is specifically for stores like convenience marts, gas stations, grocery shops and even casual restaurants. The tool helps these stores reduce IT costs and resource investments.
With all these tools, Alphabet is expected to gain solid momentum among various retailers, which in turn will contribute well to its financial performance.
The Zacks Consensus Estimate for 2024 revenues is pegged at $283.34 billion, indicating growth of 11.2% year over year.
The same for 2024 earnings is pinned at $6.74 per share, indicating growth of 15.6% year over year. The figure has moved north by 0.7% in the past 30 days.
In addition to the retail prospects, the latest move is in sync with Alphabet’s growing endeavors to strengthen its generative AI offerings, which in turn are expected to aid it in capitalizing on the growth prospects present in the booming generative AI space.
Per an Allied Market Research report, the global generative AI market’s value is likely to hit $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.
Competitive Scenario
Apart from the latest move, Alphabet’s introduction of a generative AI-backed online shopping feature, which allows users to try on clothes virtually, is a positive.
The feature helps customers understand how an apparel item will look on them, as it allows them to try clothes ranging from XXS to 4XL sizes. Further, it is designed to generate lifelike images by considering how a particular fabric stretches and wrinkles when worn.
GOOGL has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s expanding, technology-driven offerings in the retail industry are expected to stiffen the competition for e-commerce players like Amazon (AMZN - Free Report) , eBay (EBAY - Free Report) and Shopify (SHOP - Free Report) that are also making concerted efforts to bolster AI-backed retail capabilities as well as solutions for other retailers.
Amazon’s unveiling of generative AI-powered tools for sellers remains noteworthy. These tools, which are based on using LLM, are designed to aid sellers in generating good product descriptions, including titles and other listing details. With the new tools, sellers can also add or update their existing product descriptions.
eBay offers an AI tool for marketplace sellers that can create a product listing by automatically generating a title, description and information like product release date, category, subcategory, list price and shipping cost from a single photo.
The photo-to-listing AI tool addresses the "cold start" issue experienced by first-time sellers by removing the need to enter extensive information for competitive listings.
Meanwhile, Shopify Magic, Shopify’s newly launched AI tool, comes with the added feature of AI-generated product descriptions with a built-in wordsmith in the merchant’s admin.