Alphabet Steams Past Ad Worries, Fueled by Google’s Search Engine

Alphabet Steams Past Ad Worries, Fueled by Google’s Search Engine

“This is our seventh year as an A.I.-first company, and we intuitively know how to incorporate A.I. into our products,” Mr. Pichai said. “These advances provide an opportunity to reimagine many of our products, including our most important product: search.”

Philipp Schindler, Google’s chief business officer, said in the earnings call that YouTube’s quarterly sales gains reflected greater stability in advertiser spending. But the recovery has not been universal. Snap, the parent of Snapchat, posted a second straight quarterly sales decline on Tuesday, in a sign that the ad landscape remained rocky and that Google’s size and reach have given it more advantages in weathering the terrain.

Despite concerns of growing A.I. competition from the ChatGPT chatbot and Microsoft’s Bing search engine, Google’s search engine has remained a central gateway to the web for billions of users. That has helped the company convince more advertisers that its sites are still a reliable way to reach consumers.

The company has tried to refocus in other ways by shedding some projects that lacked promise, laying off 12,000 workers and consolidating two of its A.I. labs to accelerate research in recent months. In May, Google introduced a number of A.I. features and products at its annual conference, finally responding to ChatGPT’s maker, OpenAI, and Microsoft. But it remains too early to tell how these A.I. tools will affect Google’s revenue expansion or bottom line, if at all.

Google also announced on Tuesday that Ruth Porat, its longest-serving chief financial officer, would assume the newly created role of president and chief investment officer on Sept. 1. In that position, she will be responsible for Alphabet’s experimental businesses, called Other Bets, and engage with policymakers around infrastructure, economic opportunities and other matters.

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