Thursday, November 21, 2024

Bad news for coders? Google CEO Sundar Pichai says over 25% of company’s code is created by AI

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Google is increasingly relying on artificial intelligence (AI) to generate its software code, with more than a quarter of its new code now created by AI, as revealed by CEO Sundar Pichai. Although engineers continue to review and approve this AI-generated code, the move shows how the company’s deepening dependence on AI. Pichai disclosed this information during Google’s Q3 2024 earnings call, where he emphasised AI’s crucial role in the company’s growth strategy. This comes at a time when AI has created 

Alphabet, Google’s parent company, reported a revenue of $88.3 billion for the quarter. Google Services, which includes Search, generated $76.5 billion, marking a 13 per cent increase from the previous year. Google Cloud, which provides AI-powered infrastructure for other companies, achieved $11.4 billion in revenue, reflecting a robust 35 per cent year-over-year growth.

Operating income also saw significant growth. Google Services reported $30.9 billion in operating income, up from $23.9 billion a year earlier. Google Cloud experienced an even more substantial increase, with operating income reaching $1.95 billion compared to $270 million last year. This indicates that Google’s efforts in developing and selling AI tools and services are yielding considerable profits.

AI has become central to Google’s offerings, with new tools being introduced across Search, Cloud, and consumer products. In Search, AI features are expanding the scope and adaptability of search capabilities. Google has also launched personalised AI chatbots called “Gems,” powered by its Gemini AI model, designed to provide more customised interactions.

YouTube creators now have access to generative AI tools that assist with video summaries and titles. Additionally, Google Meet has incorporated an AI note-taking feature, simplifying the process of capturing meeting highlights automatically. The Pixel 9 smartphone series, packed with AI features, has received positive feedback from users.

Despite the strong earnings, Google is facing regulatory challenges. The US Department of Justice has recently labelled Google as a monopoly in the search and ad markets, with the case progressing to its remedies phase. The potential breakup of Google remains a possibility, although the final outcome is yet to be determined.

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