Alphabet (GOOGL) Boosts Google TV With Generative AI Feature – May 16, 2024
Alphabet’s (GOOGL – Free Report) Google recently added a generative AI-powered description feature to Google TV in a bid to boost the viewing experience for its users.
The company will leverage its in-house generative AI model, Gemini, to generate auto descriptions for movies and TV shows, reducing viewers’ search time.
These AI-generated summaries will be curated to suit a viewer’s personal preferences of a particular genre or actor, catering to their individual interests.
The new feature will also allow Google TV to reach a wider audience by translating these summaries into their native languages.
Alphabet is expected to gain solid traction across smart TV users on the back of its latest move. This, in turn, will further strengthen its position in the global smart streaming devices market, presenting a significant growth opportunity for the company. Per a Statista report, the global smart streaming devices market size is expected to witness a CAGR of 9.4% during the forecast period of 2024-2028.
Moreover, strengthening Google TV capabilities is expected to aid the Google Services segment’s performance, which has been a key growth driver for Alphabet. Its shares have rallied 23.5% in the year-to-date period compared with the Zacks Computer & Technology sector’s growth of 17.8%.
Stiff Competition
The latest move will aid this Zacks Rank #1 (Strong Buy) company to compete well against some notable industry players like Amazon (AMZN – Free Report) and Roku (ROKU – Free Report) , which are also making concerted efforts to leverage generative AI capabilities to gain a solid footing in the streaming devices market.
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Amazon introduced generative AI updates for its Fire TV voice search, allowing users to ask more nuanced and open-ended questions about TV shows and movies.
This generative AI feature allows users to ask complex queries to Alexa directly from their Fire TV or Alexa Remote, transforming requests into conversations rather than commands. It allows users to speak in a more natural and conversational way, allowing them to discover new content more effectively.
Roku, on the other hand, announced its plans to introduce Roku Smart Picture, a set of generative AI-powered features that uses machine learning and content partner data to automatically adjust the viewing experience of all Roku TV models.
Growing Gen AI Efforts
The latest move is in sync with Alphabet’s increasing efforts to integrate generative AI capabilities into its products and services.
Recently, the company unveiled LearnLM, a family of generative AI models designed for conversational tutoring on various subjects. The platform enables teachers to discover new ideas, content and activities and tailor materials to student needs. It powers Circle to Search on Android, solving basic math and physics problems, and underpins YouTube’s clarifying question and quiz feature.
Alphabet also introduced new additions to its Gemma family of open models, including Gemma 2, the next generation with a 27 billion parameter model, and PaliGemma, the first vision language model for image captioning, labeling, and Q&A use cases.
All the above-mentioned endeavors will enable the company to capitalize on growth opportunities present in the booming generative AI market. Per a Fortune Business Insights report, the global generative AI market size is expected to hit $67.2 billion in 2024 and reach $967.7 by 2032, exhibiting a CAGR of 39.6% between 2024 and 2032.
Solidifying prospects in the booming generative AI market are expected to aid its overall financial performance in the days ahead.
The Zacks Consensus Estimate for 2024 total revenues stands at $295.12 billion, indicating year-over-year growth of 15.1%.
Moreover, growing gen AI efforts will help the company fend off competitors like Microsoft (MSFT – Free Report) , which is also making increasing efforts to boost its generative AI capabilities.
Recently, Microsoft introduced new generative AI and data solutions for retailers, enabling personalized shopping experiences, empowering store associates, and unifying retail data. These include Azure OpenAI Service copilot templates, retail data solutions in Microsoft Fabric, Dynamics 365 Customer Insights copilot features, and Retail Media Creative Studio.
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