As Google gears up for I/O event, AI takes center stage

Alphabet's (GOOG, GOOGL) Google is set to host its highly anticipated I/O developer conference on Tuesday, where the tech giant is expected to unveil new AI offerings.

This development follows Apple's (AAPL) recent launch of its latest iPad lineup, which boasts new AI features. Furthermore, OpenAI has introduced a new version of its ChatGPT bot that can listen and communicate verbally.

Yahoo Finance's Seana Smith and Brad Smith break down the details of the tech companies' growing investments and strategic approaches to AI.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video transcript

As usual, it's all about a I on Wall Street.

Hot on the heels of Apple's iPad launch event last week, Google is going all out for its IO Developer conference today, the company expected to announce new A i offerings for its services.

Meanwhile, as Apple and Google transform their voice assistance into chat bots open A I is transforming its chatbot into a voice assistant.

The company just announced new chat GP T that listens, looks and talks.

OK, so we're getting one step closer to Black Mirror here.

But ultimately, I think it really does continue to showcase just how much of the capital expenditures that are going into these generative A. I ambitions for companies, which we've heard about on the earnings calls for Microsoft, for alphabet for meta platforms and how they're all anticipating for the spending in this first quarter to really have been perhaps the trough of that spending that they're continuing to put forward here and the return on that investment is key.

And I was looking at one of the particular surveys around Deloitte's digital media trend surveys and the return on investment that these companies are looking for, uh, within the organisations for productivity, for scaling up growth and or hyper scaling.

Even, UM, it really is going to take billions of dollars for a lot of these companies, quite frankly earmarked and put forward into some of the major investments in generative of a I to actually see the results of this come forward in the near term period of time.

But it's a long term bet it is.

And I think the pressure is on Google right and what it's going to announce today on the heels of the Open a I announcement that you talked about that We got yesterday, also on the heels of reports that Apple is actually teaming up here with open A I that, of course, and it was viewed as a loss here for alphabet.

We saw that in yesterday's trading action.

It's off just a fraction here today ahead of this, but I think apple or excuse me alphabet does have the potential here to surprise to the upside.

It is expected to unveil some new features that could be enough to excite the street to excite analysts when it comes to tie ins to its search business and to its broader ecosystem here.

Bank of America, writing about the event here that it could help solidify the case for Google and the Android ecosystem as a net A beneficiary.

So exactly what we are going to hear remains to be seen.

And also we got to note that this comes ahead of what is expected to be a pretty big announcement from Apple next month when they're going to be expected to talk about their A I strategy.

So we'll see, because I think the criticism when it does come to alphabet is that it still lags behind Microsoft when it comes to those a I efforts options a I since we're talking about a, I has an expected move by the end of this week.

Post this announcement of about 3% here for shares of Google.