In its continuous pursuit of advancing in the generative AI realm, Alphabet’s (NASDAQ:GOOGL) Google has taken substantial steps to bolster its presence, particularly in the domain of search capabilities.

Google’s commitment to this initiative is evident in the recent extension of its AI-powered Search Generative Experience (SGE) to 120 countries, aimed at enhancing its globally accessible conversational search feature.

The recent announcement by Google includes noteworthy feature updates such as the addition of support for four additional languages: Spanish, Portuguese, Korean, and Indonesian.

Moreover, several updates to the SGE were disclosed, allowing users to pose follow-up questions directly on search results pages. Users can also revisit previous queries, search results, and search ads in dedicated slots. Furthermore, the new enhancements enable users to choose the correct meaning for phrases with multiple interpretations and specify the gender for a particular word.

These initiatives are anticipated to drive increased traffic to Google’s search platform.

In terms of growth prospects, Google is strategically positioned to tap into the vast potential of the burgeoning generative AI market. According to a Fortune Business Insights report, the global generative AI market is projected to reach $43.87 billion in 2023, with expectations to surge to $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.

The strength in the generative AI market is poised to contribute significantly to Alphabet’s overall financial performance, fostering investor confidence in the stock. The Consensus Estimate for total revenues in 2023 stands at $254.67 billion, reflecting an 8.9% growth from 2022.

Alphabet has exhibited strong performance, with a year-to-date growth of 50.3%, surpassing the industry’s growth of 48.9%.

The recent expansion aligns with Alphabet’s broader strategy to fortify its search business. In addition to these efforts, Google has introduced updates to SGE, including alternate drafts and image generation. These features allow the generation of diverse writing types and enable users to specify image types, receiving four results in a conversational experience that can be downloaded as .png files or edited.

Further enhancements to SGE include AI-powered summaries, term definitions, coding improvements, and improvements in travel and product search features, among other developments. These endeavors are anticipated to contribute positively to the performance of Google’s search business.

In the third quarter of 2023, search revenues from Google-owned sites experienced an 11.3% year-over-year increase, reaching $44.03 billion. The Consensus Estimate for fourth-quarter 2023 Google Search revenues is projected at $47.7 billion, reflecting a 12% growth from the corresponding quarter in the previous year.

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