Alphabet/Google become AI-centric to secure foothold and dominate digital user experience
High-tech corporations have invested heavily in technologies that produce large amounts of revenue, and with technological advances accelerating, these corporations must invest even more to protect their rich revenue streams. A good example of a company moving ever further into the future is Alphabet, the parent company of Google. Search engine and advertising are the cornerstones of Google’s revenue, and they want to keep it flowing, so Google/Alphabet has identified several areas that they feel are important to ensuring a high-revenue future for themselves and their investors. Alphabet has publicized projects and initiatives across Google and its other entities, and many of these initiatives point to the important role of AI in their future, and by extension our future as well.
At the heart of its strategy is the idea of being AI-centric. With this approach, they anticipate maintaining a leadership role with their core business (search and advertising), as well as delving into areas where they see opportunities for improvement or disruption using an AI approach. Here’s a brief overview of some of the newer areas that Google/Alphabet hope to fully capitalize on in the future.
- cloud computing services: Google wants to increase its share of the cloud market. They currently rank third, after Amazon and Microsoft, however they have been expanding their presence through a series of strategic investments, acquisitions and internal initiatives to better compete with rivals in this space. Currently, Google’s cloud business is growing at a faster rate than the competition. Products and services to watch are G Suite, a new chip called EDGE TPU that can perform machine learning processes on Internet of Things devices, and they have some cloud-enabled Blockchain projects in motion with strategic partners. An important aspect of cloud computing is security, and this is also a new area of focus for Google. As of January 2018, Google spun off Chronicle, to be the cyber security arm and work towards a “digital immune system”. Businesses are generating more and more information every day and will require more complex computers and incremental computing infrastructure. Google believes this can be handled through the AI machine learning capabilities they are developing.
- Transport and logistics: Google/Alphabet anticipates opportunities to continue disrupting this sector. Investments include LIME, a scooter company, as well as UBER, LYFT, and a few other transportation services. This sector also includes autonomous vehicles, causing serious disruption to the trucking industry as well as people movers. Alphabet has its commercial arm WAYMO, and its miles traveled by autonomous vehicles are the largest in the world (8 million miles). WAYMO has said it intends to use semi-autonomous trucks to deliver cargo to its data centers in Atlanta. Google’s drone delivery company Project Wing has become an independent company under the Alphabet umbrella and has completed some drone deliveries in Australia. All products and services like these make use of AI technologies that are rapidly being developed by Google/Alphabet.
- Emerging markets: Google continues to expand in India and Southeast Asia, two regions experiencing rapid growth in Internet usage. Google has been involved in funding an Indonesian private transportation giant called GO-JEK, which is similar to UBER but also offers food delivery services and a mobile payment platform. In India, Google has invested in a personal concierge and delivery service platform, and TEZ, a free mobile wallet that allows users to make payments directly from their bank account. This is all a big part of Google’s attempt to become an integral part of commerce in India. Despite historical setbacks and tensions, Google is also focused on China, making more investments in the country, such as com, China’s second-largest e-commerce platform, and Chushou, a China-based gaming company.
- Health care: Alphabet intends to advance the effectiveness of healthcare through better data processing using AI. Alphabet’s life sciences subsidiary, VERILY, focuses on disease detection, a crucial part of effective healthcare. Google is leveraging its AI skills to improve healthcare data management, and its AI-focused subsidiary DeepMind has an app called “STREAMS” that helps detect kidney injury based on lab results, so doctors can receive alerts quickly through the mobile application. and quickly escalate urgent cases.
AI is central to Alphabet’s long-term outlook, as it is the common thread running through search and advertising, cloud computing, autonomous driving, healthcare and many of the company’s other endeavors. This includes the expanding market for digital assistants and smart home products. Consumers can now choose between big competition like Apple (SIRI) and Amazon (Alexa). Google wants to win this market and every other market it enters. We see Google/Alphabet being at the forefront of AI technology, making more and more investments to protect and expand their revenue streams. Many other industries will be affected by AI developments, and many will be affected in ways we have not yet imagined. The breadth and pace of technological change will continue to increase. Let Crypto Trend be your guide for the future, as we continue to identify technology investment opportunities that can lead to financial success.