Google Generating ‘More Than a Quarter of All New Code by AI’, Says CEO Sundar Pichai

According to Google CEO Sundar Pichai, the company has cut AI Overviews’ expenses by over 90%.

Alphabet, the parent company of Google, released its quarterly financial results on Tuesday. How the Mountain View-based tech giant is minimising the expenses of operating pricey artificial intelligence (AI) infrastructure for all of its goods and services was a key highlight of the earnings call with company CEO Sundar Pichai. According to the CEO, the business has begun using generative AI to generate over one-fourth of all new code, which has made it possible for the business to operate more economically.

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In a blog post, Google detailed the highlights from Pichai’s speech at the earnings call. AI and how the tech giant has addressed significant challenges in developing and expanding the infrastructure took up a significant portion of the speech. The AI-based services that Alphabet began offering at the beginning of the year accounted for the majority of the company’s revenue increase, which was $88.3 billion (approximately Rs. 7.4 lakh crore) in the previous quarter.

Pichai noted that a significant portion of the higher revenue was due to the company cutting costs and operating more efficiently with a lean structure. He went on to say, “For example, Notebook LM, an immensely popular product with so much promise, was built by a small, committed team.”

The use of AI to write code for different products, however, was arguably the tech giant’s greatest accomplishment. He emphasised the company’s ability to increase efficiency and productivity, pointing out that over 25% of all new code at Google is now produced by AI before being approved by engineers.

Google’s search products, which currently include its search engine, Circle to Search, AI Overviews, and Google Lens, are one of its main areas of focus. According to Pichai, the business has successfully lowered the price of each service. According to reports, AI Overviews has “reduced costs by more than 90 percent for these queries through hardware, engineering, and technical breakthrough.” This makes it the most significant.

Additionally, Google Cloud services saw a rise in revenue. According to Pichai, the division generated 11.4 billion dollars in revenue, or about Rs. 95,850 crores, a 35 percent increase from the previous year. Additionally, it achieved 17 percent operating margins.

The tech behemoth intends to keep spending money on AI technologies in the future in order to increase their capabilities and further reduce expenses.