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Google I/O 2023: Sundar Pichai to Highlight AI Innovations

When Alphabet Inc. Chief Executive Officer Sundar Pichai steps onto the stage at the company’s annual developer conference on Tuesday, which is set to take place at the Shoreline Amphitheater in Mountain View, California, he may try to make a case for how Google continues to leverage AI, bringing it to its most popular products that are used by billions of people every day. Pichai would leave no opportunity to drive the message that “AI” and “generative AI” are crucial to its developers, consumers, analysts, and investors. Pundits are in agreement that Google needs to impress if it wants to keep its title as the most innovative technology company – and if it wants to continue to be at the center of the tech ecosystem through Android, the app store, the search engine, and huge developer support.

Google’s I/O, like other developer conferences, is largely focused on the platforms for which app makers and developers build. It’s not often aimed directly at consumers, but Google uses its annual developer conference to bring meaningful updates to its core apps, services, and operating systems, spanning Android, Gmail, Chrome, Photos, Workspace, and others that are of consumer interest as well. This year won’t be too different, and it’s possible Google will announce new software updates at this year’s conference, keeping up with the trend of past conferences.

Main Announcements at Google I/O: A Focus on AI

Perhaps the biggest announcements at Google I/O will revolve around AI or artificial intelligence, as it has been the focus of the entire tech industry for the past few months. Pichai and Co will demonstrate how AI powers every product Google currently offers and what’s coming in the future. Industry insiders expect Google’s deep investments in artificial intelligence to be showcased at its annual developer conference this week.

“AI will definitely be the key theme,” says Charlie Dai, VP and principal analyst at Forrester. “Google is very likely to debut product enhancements across software offerings powered by Generative AI features with Gemini at the core.”

Over the past few months, Google has been demonstrating its AI efforts to better compete with Microsoft and OpenAI, as the latter two companies continue to expand aggressively with AI offerings. Microsoft has become a leading player in generative AI – technology that produces convincing text, images, or audio from simple hand-typed prompts – thanks to its multibillion-dollar investment in OpenAI, the developer of the ChatGPT chatbot. The Redmond giant made an early bet on ChatGPT-maker OpenAI and quickly embedded its AI-powered CoPilot service into most of its main software products, from Windows, Edge, Office apps, to Bing, powering Microsoft’s ecosystem. Microsoft’s focus on AI made it the most valuable tech company in the world, ahead of Apple and Nvidia. Microsoft’s “Copilot everywhere” strategy seems to be working, and Google too is on the same path as it expands its AI-related efforts, albeit with a different mindset.

Gemini’s Expansion into the Android Ecosystem

Google is in an advantageous position primarily because there is a huge community of Android developers, the AI stack that Google has is more flexible and much wider, and it’s easily accessible. Google offers those development solutions across hardware and software while also owns the cloud infrastructure. But the battleground involves large language models, or LLMs — complex algorithms that lie at the heart of artificial intelligence.

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Expanding AI Features to More Devices

Google has already demonstrated a taste of AI using both on- and off-device AI on the Pixel 8 series alongside its partner, Samsung, which offers “Galaxy AI” on the Galaxy S24 series. AI features such as Circle to Search, Magic Editor, and Audio Magic Eraser show what is really possible on smartphones using artificial intelligence.

Expanding Gemini’s capabilities onto Android smartphones is a logical step in that direction. Google’s on-device AI could give smartphones new capabilities, from translating and summarising conversations to taking and editing photos with the power of generative AI algorithms. This could be possible if the algorithms are baked into the devices’ chips and the software that runs them, rather than accessed via the cloud.

Collaborations and Future Plans

“We have seen collaboration with Samsung using the Gemini model; we can expect further collaborations with other OEMs using the Gemini models at I/O this year,” Chaurasia said, while anticipating.

It wouldn’t be a surprise if more smartphone makers, particularly Chinese OEMs, bring AI-infused features to their smartphones in the near future. Ahead of I/O, Google announced that it would bring a swath of AI features to a brand new Pixel 8a. It’s a mid-range smartphone that uses Google’s Gemini Nano model to power two on-device AI features on the phone. The device is powered by Google’s own custom Tensor 3 chip, which is designed with machine learning algorithms in mind and capable of running the Gemini Nano AI system that powers AI features. This is a smaller version of its family of large language models, which comes under the umbrella name Gemini.

Chaurasia says Google’s strategy with Gemini on Android is simple. The company wants to bring the power of Gemini AI to more smartphones, expand access to AI features, get more partners onboard, and ensure that Gen AI features reach out to devices as early as possible, allowing users to become familiar with AI. Though it remains to be seen if Google powers the next version of its mobile operating system, Android 15, with Gemini natively. But that is less likely the case.

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Challenges and Opportunities in the AI Market

Under Pichai, Google may be working harder to weave artificial intelligence into its products, but meeting investors’ expectations is challenging. On one hand, the competition from Microsoft, OpenAI, and smaller startups such as Perplexity and Anthropic is stronger than ever. On the other hand, there is pressure to roll out AI features at a breathtaking speed while also continuing to improve Large Language Models. However, the true struggle is who controls artificial intelligence and the tech’s future. Every big tech company is currently engaged in a “platform war,” and the one that can make AI mainstream could reap the benefits in years to come, just like how Google dominated the search business and Microsoft controlled the PC market.

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The Future of AI at Google

But investors continue to question Google on when it will start making money from its AI investments. More importantly, the piece of the puzzle is if AI threatens its money-making advertising business. Microsoft doesn’t have any fear of losing out to competition because it is more focused on the enterprise market and doesn’t have many consumer-facing products. However, Google’s case is different from any other tech company that is committed to long-term AI plans.

If an AI chatbot starts to offer users a way to search the web and provide direct answers similar to how a search engine functions, it could make a product like Google Search less popular. This is why Google has been cautious in bringing AI to its search engine. Google’s search engine has remained free of charge, while ads shown to users bring in money and help the company to fund its other big projects. Google brought in $175bn in revenue from search and related ads last year. That’s how valuable the search business is to Google.

While Google has been experimenting with adding its Gemini AI to search and is making optional generative AI search available to some users for beta testing, it has been slow to add any features that overshadow how a traditional search engine works.

Looking Ahead: The AI Arms Race

Despite some raising concerns, Google’s grip on the search business is yet to be challenged, with Microsoft’s Bing only commanding 4.4 percent of the global search market, but the threat is looming. OpenAI is reportedly developing a feature for ChatGPT that can search the web and cite sources in its results, and if that feature gets released, the product will be a direct competitor to Google. However, there is no guarantee if OpenAI’s successcds it giving tough competition to Google in lucrative search business.

Google has not yet said whether it would bring an ad-free search experience in the future, but the company is willing to charge consumers for a beefed-up version of Gemini through a premium tier of its Google One subscription service. It also sells chargeable premium features for Enterprise and Business plans for the Google Workspace productivity suite, such as Gmail and Docs.

Conclusion

“While Microsoft’s AI advancements are noteworthy, Google’s search business remains strong. However, the evolving AI landscape and regulatory dynamics could shape their future competition,” said Dai.

Google’s I/O keynote starts at 10 am California time or 10:30 pm India Standard time, on Tuesday, May 14. I’ll be covering it live so check back to see up-to-date news and commentary from the event in our I/O live blog straight from Google’s headquarters from Mountain View, California.

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