Alphabet's (GOOGL) Google Experiments with AI Mode to Revolutionize Search
Alphabet’s GOOGL Google is in the process of experimenting with its latest AI-only version of Search, aiming to enhance users’ search experience. This new tool, known as “AI Mode”, is currently exclusive to Google One AI Premium users. Google has described this as a "testing" phase for the experimental version of its new search engine, which eliminates the traditional 10 blue links and instead generates an AI summary in response to user queries.
Powerful AI Model
Google has stated that the AI Mode is powered by a customized version of its advanced Gemini 2.0 model. This tool is designed to assist users in finding answers to complex questions, particularly those related to coding, mathematics, and multimodal queries. Robby Stein, Google’s VP of Product, mentioned that the demand from premium users for more AI-generated responses led to the introduction of the AI Mode. Users can access this new feature on the search results page by clicking on the “AI Mode” tab, situated alongside existing options such as Images and Maps.
Testing and Feedback
During this testing phase, Google aims to collect valuable feedback on the quality and utility of the AI Mode. Currently, the model may occasionally display traditional webpage links instead of a comprehensive AI Overview if it is uncertain about the output. Some responses might also reflect personal opinions. Google plans to enhance the AI Mode based on the feedback received, introducing new capabilities and features, including image and video responses.
Expansion and Future Updates
Google had previously initiated testing of AI Overviews in the U.S. in May 2024. These summaries appear at the top of search results, followed by the conventional blue links to relevant websites and sources. With the introduction of the AI Mode, users can now access more detailed AI summaries with hyperlinks to referenced webpages. Additionally, users have the option to ask follow-up questions through a search bar, eliminating the need for the traditional 10 blue links. Google also announced the gradual rollout of AI Overviews to a wider audience, making them accessible even to teenagers without requiring a sign-in.
Market Outlook on GOOGL Stock
Despite Google's impressive 32.2% growth over the past year, Wall Street opinions on Alphabet’s stock trajectory remain divided. According to TipRanks, GOOGL stock holds a Moderate Buy consensus rating, with 26 Buy and 11 Hold ratings. The average Alphabet Class A price target of $215.56 suggests a potential upside of 24.6% from the current levels.
