GOOGL Stock Pops on AI News at Google I/O 2023

While introducing new artificial intelligence initiatives at the Google I/O 2023 developers event on Wednesday, letters (Google) made one thing clear to investors: Advertising is here to stay, no matter how much Internet search changes. GOOGL shares rose on AI announcements made at the event.




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Alphabet unit Google plans to unveil its advertising strategies amid the revelation of AI being developed at Google Marketing Live on May 23.

Shares of GOOGL rose 4.1% to close at 111.75 on the stock market today. According to Wednesday’s gain, Google stock is up 26% in 2023.

How Google’s core digital advertising business will be affected by the AI ‚Äč‚Äčalliance Microsoft (MSFT) and startup OpenAI Alphabet are high on the stock. This is because Google’s search engine returns responses to OpenAI’s ChaptGPT prompts when sending users to sponsored or unsponsored websites.

GOOGL Share: How AI Will Change Advertising Strategy

At Google I/O 2023, the company discussed AI-enhanced web search under a project code named Magi.

Google unveiled Search Labs, “a new way to access early experiments in search using generative AI capabilities.”

“(With the search generating experience), search ads will continue to appear in dedicated ad slots across the page,” said Vidya Srinivasan, vice president and general manager of Google Ads. blog. “With this new experience, advertisers will have the opportunity to reach potential customers throughout their search journeys. We will test and improve the advertising experience as we learn more.”

He added: “As always, we are committed to transparency and distinguishing ads from organic search results. When search ads appear, they will continue to display our industry-leading clear and transparent ad labels with a ‘sponsored’ label. Black text.”

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Ahead of Google I/O 2023, the company has already made it clear that it will incorporate AI into search amid pressure from Microsoft.

GOOGL shares were first seen on April 6 from a buy point of 106.69 cup-with-handle. Investors can use the April 6 high of 109.17 as another entry.

Google’s Bart uses ChatGPT

Most of the updates announced at Google I/O included Google’s response bar to OpenAI’s Chat GPT. OpenAI introduced its next-generation chatbot technology in March. It is called GPT-4. A new language model is multimodal. That means it accepts text, speech, images and video as input.

Meanwhile, the “godfather of AI,” Jeffrey Hinton, said in early May that he was leaving Google. He warned of the negative impact of AI on humanity.

Follow Reinhardt Krause on Twitter @reinhardtk_tech For updates on 5G wireless, artificial intelligence, cyber security and cloud computing.

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