"Google's entrance was pretty bumpy, with its AI model giving incorrect answers and receiving plenty of public scrutiny. Then, investors panicked when Google's search share fell below 90% for the first time in more than a decade. Those worries aren't as prevalent now, with the search engine leader reclaiming its lost ground a few months later, but the news put investors and Google executives on notice."
"Before understanding why Google's AI moves may be more important than its search engine, investors should consider how bleak things looked for Google early in the AI race. Google's entrance was pretty bumpy, with its AI model giving incorrect answers and receiving plenty of public scrutiny. Then, investors panicked when Google's search share fell below 90% for the first time in more than a decade."
Google built its reputation on search but is now positioning itself as an AI company with initiatives that could significantly accelerate revenue. Alphabet is investing heavily in varied AI projects that could unlock long-term value if one gains momentum. Early AI rollouts were rocky, producing incorrect outputs and triggering investor concern when search share briefly dropped below 90%. Google reclaimed share but treated the episode as a warning, intensifying AI investment for both growth and survival. Continued innovation is required to compete with ChatGPT, Grok, and other rivals. Future growth is expected to come from non-search segments such as Google Cloud.
Read at The Motley Fool
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