Google Expands AI Tools for Business at Annual Conference

Google is strengthening its position in the artificial intelligence (AI) industry by making its powerful AI tools more accessible and robust for businesses. The company made this announcement at its annual Google Cloud Next conference, where it showcases its latest technologies.

Among the AI-related announcements, Google is expanding its Vertex AI and Duet AI systems. Vertex AI empowers companies to train and deploy their own machine learning models, while Duet AI can assist in creating presentations, summarizing conversations, and composing emails based on voice commands or relevant content.

The event, held in San Francisco from Tuesday to Thursday, has highlighted the intense competition and rapid investments as companies strive to become leaders in the AI market. At the conference, Google executives revealed updates to Vertex AI, which will facilitate the development of chatbots capable of addressing a wider range of customer queries.

Additionally, Google announced that it is making Duet AI available to all corporate Gmail customers, following a limited release in May. Users can request a free trial, but the monthly price will be $30, similar to the cost of Microsoft 365 Copilot.

Financial analysts on Wall Street have expressed their enthusiasm for these developments from Google.

J.P. Morgan Sees Strong Potential in Google's Duet AI

Doug Anmuth, an analyst at J.P. Morgan, recently expressed optimism about the launch of Google's Duet AI. In his report, he highlighted that this development solidifies Google's dominant position in the field of artificial intelligence within the Cloud industry. Furthermore, Anmuth emphasized that Google Cloud continues to be a crucial driver of growth for Alphabet, the parent company of Google.

Anmuth's projections indicate that by 2023, Google Cloud could generate a substantial revenue of $33 billion, aligning with consensus estimates. This forecast represents a remarkable annual growth rate of over 26%, establishing it as the fastest-growing segment within Alphabet. With these promising figures in mind, Anmuth rates Alphabet's stock as Overweight, equivalent to a Buy recommendation, with a target price of $150.

On Wednesday, Alphabet's stock showed a modest increase of 0.6%, reaching $135.34.

In line with this positive evaluation, BofA Securities analyst Justin Post reaffirms his Buy rating on Alphabet's stock and has raised the target price to $146 from $142. Post believes that the recent unveiling of Duet AI will alleviate any doubts surrounding Google Cloud's capabilities in the field of artificial intelligence.

Similarly, Justin Patterson from KeyBanc maintains an Overweight rating on Alphabet's stock and sets a price target of $145. Patterson emphasizes that the company's ability to scale its Cloud services will be a crucial factor in driving medium-term revenue growth and potentially leading to positive upward earnings per share (EPS) revisions.

Andrew Boone at JMP Securities also shares a bullish view, stating that Google's AI tools designed for developers underscore the company's competitive edge. These tools aim to tackle significant challenges faced by businesses, ultimately enhancing their cost-effectiveness. Boone rates Alphabet's stock as Outperform, with a price target of $138.