Bad news for coders? Google CEO Sundar Pichai says over 25% of new code generated by AI
Google's CEO Sundar Pichai recently disclosed during Google's Q3 2024 earnings call that over 25% of the company's new code is now being generated by artificial intelligence (AI). This reliance on AI to create software code showcases Google's increasing dependence on this technology, despite the fact that human engineers still review and approve the AI-generated code.
Impact on Google's Growth Strategy
Pichai emphasized the critical role of AI in driving Google's growth strategy, particularly as the company's parent company, Alphabet, reported a revenue of $88.3 billion for the quarter. Within Google Services, which includes Search, revenue reached $76.5 billion, indicating a 13% increase from the previous year. Google Cloud, known for providing AI-powered infrastructure to other companies, saw a significant growth as well, with $11.4 billion in revenue, reflecting a robust 35% year-over-year growth.
Significant Increase in Operating Income
Operating income also witnessed substantial growth, with Google Services reporting $30.9 billion, up from $23.9 billion the previous year. Google Cloud experienced an even more substantial increase, with operating income reaching $1.95 billion compared to $270 million in the previous year. These figures underscore the profitability of Google's efforts in developing and selling AI tools and services.
AI Integration Across Google's Offerings
AI has become integral to Google's offerings, with new AI-powered tools and features being introduced across Search, Cloud, and consumer products. In Search, AI capabilities are expanding the boundaries of search functionalities. Google has rolled out personalised AI chatbots named “Gems,” powered by its Gemini AI model, to offer more tailored interactions.
YouTube creators now benefit from generative AI tools that aid in creating video summaries and titles. Moreover, Google Meet has integrated an AI note-taking feature that simplifies the process of automatically capturing meeting highlights. The Pixel 9 smartphone series, equipped with advanced AI features, has garnered positive feedback from users.
Regulatory Challenges and Monopoly Concerns
Despite its strong financial performance, Google is grappling with regulatory challenges. The US Department of Justice recently classified Google as a monopoly in search and ad markets, with the case moving to its remedies phase. The potential breakup of Google looms as a possibility, although the final decision is pending.
For more updates on India's Businesses and Economy, subscribe to Business Today Magazine.
