Alphabet (GOOGL Quick QuoteGOOGL - Free Report) is leaving no stone unturned to bolster its presence in the automobile sector on the back of AI enhancements for Android Auto.

In this regard, Alphabet introduced a slew of AI features to Android Auto, bringing smartphone functionality to vehicle infotainment screens.

With this new addition, Android Auto will use AI to automatically summarize long texts or busy group chats while driving, providing a quick and easy way to stay updated on unread messages.

Additionally, Android Auto will use AI to suggest responses and actions, such as sharing ETAs, navigating locations and calling friends, with the ability to tap once.

Alphabet is expected to gain significant popularity among car owners using the Android platform on the back of its latest move.

Android Auto in Focus

Google's AI integrations to Android Auto bode well for the company’s increasing focus to solidify its global presence in the promising automotive infotainment market. Per a Fortune Business Insights report, the global automotive infotainment market is expected to reach $49.86 billion by 2030, indicating a CAGR of 6.5% between 2023 and 2030.

Apart from the latest move, the company recently rolled out Android Auto 11.0 for Samsung smartphones, which allows users to customize status and app icons, indicating a strong adoption of the feature by Samsung users.

The company unveiled new features to Android Auto that help customers identify a car as an electric vehicle (EV) and allow them to toggle on EV features within Google Maps.

Google also launched a Google Maps feature for Android Auto, allowing users to save their parking location upon arrival, triggering a reminder the following day.

The company’s growing endeavors to bolster its Android Auto portfolio will expand Alphabet’s Android offerings. This, in turn, will boost its Google Services segment, which remains the key growth catalyst for Alphabet. Its shares have rallied 56.1% in the past year compared with the Zacks Computer & Technology sector’s growth of 45.1%.

The strengthening Google Services segment is expected to aid its overall financial performance in the days ahead.

The Zacks Consensus Estimate for 2024 total revenues stands at $283.39 billion, indicating year-over-year growth of 11.26%.

Growing AI Initiatives to Benefit Google

Apart from the latest move, Alphabet is developing an AI-induced feature to enhance its Android Auto system, allowing Google Assistant to summarize busy conversations and reducing disruption caused by excessive message reading.

Google also introduced AI-powered features to Google Photos, including Stacks, which reduces clutter and automatically organizes similar photos using visual similarity signals, enhancing user experience and efficiency in photo organization.

All these endeavors are expected to help Alphabet’s growing efforts to capitalize on growth opportunities present in the global AI market space. Per a Fortune Business Insights report, the global AI market size is expected to reach $2.02 trillion by 2030, exhibiting a CAGR of 21.6% between 2023 and 2030.

Zacks Rank & Stocks to Consider

Currently, Alphabet carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET Quick QuoteANET - Free Report) , NVIDIA (NVDA Quick QuoteNVDA - Free Report) and Itron (ITRI Quick QuoteITRI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have returned 116.5% over the past year. The long-term earnings growth rate for ANET is pegged at 19.77%.

Shares of NVIDIA have returned 240.6% over the past year. The long-term earnings growth rate for NVIDIA is currently projected at 13.50%.

Shares of Itron have gained 22.3% over the past year. The long-term earnings growth rate for ITRI is currently projected at 23%.