Google, a subsidiary of Alphabet (NASDAQ:GOOGL), has introduced advanced generative AI solutions aimed at broadening its engagement with various retailers. These tools are strategically crafted to empower retailers in delivering enriched shopping experiences to their customers, ultimately facilitating an expansion of their customer base and driving increased sales.

This unveiling precedes the National Retail Federation’s annual conference scheduled from January 13 to January 17 in New York, emphasizing Google’s significant strides to establish a robust presence in the retail sector. As the use of generative AI continues to grow across industries, its expanding applications in the retail space are particularly noteworthy.

Among the newly introduced tools is the Conversational Commerce Solution, a chatbot featuring generative AI-powered virtual agents. These virtual agents can seamlessly integrate into retailers’ websites and mobile apps, utilizing Google’s large language models (LLMs) PaLM and Imagen. These models enable the automatic creation of product descriptions, metadata, and categorization suggestions. This empowers retailers to offer personalized product recommendations based on customer preferences through virtual agent-customer interactions, along with the ability to generate new product images from existing ones.

Google has also introduced a new LLM feature aimed at enhancing product searches. Additionally, the tool lineup includes solutions designed to fortify retailers’ customer service systems and streamline product cataloging processes.

For offline retail establishments like convenience marts, gas stations, grocery shops, and casual restaurants, Google has announced the Google Distributed Cloud Edge. This managed self-contained hardware tool is specifically tailored to help these stores reduce IT costs and resource investments.

With these innovative tools, Alphabet anticipates gaining strong traction among diverse retailers, contributing positively to its financial performance. The Consensus Estimate for 2024 predicts revenues of $283.34 billion, reflecting an 11.2% year-over-year growth. The estimated earnings for 2024 stand at $6.74 per share, indicating a 15.6% year-over-year growth, with a 0.7% increase in the past 30 days.

Beyond its retail prospects, this move aligns with Alphabet’s broader strategy to enhance its generative AI offerings, positioning itself to capitalize on the promising growth opportunities within the burgeoning generative AI space. According to a report by Allied Market Research, the global generative AI market is expected to reach $191.8 billion by 2032, experiencing a CAGR of 34.1% between 2023 and 2032.

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