Google says its investments in AI are driving more searches
Alphabet says its investments in artificial intelligence are driving faster growth in Google searches, including searches with commercial intent. Chief executive Sundar Pichai said the year-on-year query growth rate was the highest in five years, as the company reported higher revenue across its main businesses.
Revenue for the quarter reached $127.6 billion, up 25 per cent year on year, while Google Search and other revenue rose 12 per cent. Google Cloud revenue more than doubled, increasing 103 per cent to $30.7 billion. Alphabet also reported more than 150 million YouTube Music and Premium subscribers worldwide, including people on trials.
In short
- Google says AI investment is accelerating search growth.
- Alphabet revenue rose 25 per cent to $127.6 billion.
- Google Cloud revenue climbed 103 per cent year on year.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Google’s AI investments may be making search more useful and accessible, encouraging people to ask more questions, including when they are looking to buy. Faster query growth alongside rising revenue suggests the investment could be strengthening Google’s core business while helping it compete and fund further innovation.
The case against
Higher search activity does not by itself show that AI investments caused the growth; other factors, such as changes in user behaviour or the wider market, may also contribute. Commercial searches and revenue growth may benefit Alphabet without showing that users receive better results, and the figures do not establish how AI’s costs or effects on the wider information ecosystem should be weighed.
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