Google's Biggest Bet: AI-Powered Search

Alphabet, Google's parent company, is doubling down on its core business of online search by integrating artificial intelligence, according to remarks made by Ruth Porat, Alphabet's president and chief investment officer, at the Reuters NEXT conference in New York on Tuesday.

Porat, in an interview with Reuters Editor-in-Chief Alessandra Galloni, emphasized that AI-powered search remains Alphabet's most significant investment. "We're meeting people where they want to be next," Porat stated.

This strategic focus comes as Alphabet seeks to maintain its dominance in the face of competition from companies like OpenAI, the creator of ChatGPT. Alphabet has already introduced AI-generated overviews to search queries, aiming to enhance the user experience. However, this integration has also presented challenges, as AI models are sometimes prone to fabricating information, a phenomenon known as "hallucinations."

Porat highlighted other key investment areas for Alphabet, including Google Cloud. She also noted the company's significant efforts in healthcare, citing its work on AlphaFold, an AI system that predicts protein structures and is being applied to drug discovery. She emphasized AI's potential to improve healthcare outcomes and enhance the doctor-patient relationship.

When asked about the substantial cost of Alphabet's AI investments, Porat described the technology as a "generational opportunity," underscoring the company's commitment to innovation. Alphabet has previously indicated plans to spend $50 billion on chips, data centers, and other capital expenditures in 2024. However, Porat stressed that these investments must yield a return. "We need to generate a return," she said.