Some have accused the tech giants of blowing AI smoke on earnings calls—touting the supposed benefits of massive capital expenditures without reporting any tangible impact on productivity or savings. Google parent Alphabet, however, says it is making big progress on both fronts. More than a quarter of all new code at the search giant is now generated by AI, CEO Sundar Pichai said during the company’s third-quarter earnings call on Tuesday.
That’s only a small part of how Alphabet executives say the company’s long-running AI efforts are beginning to benefit its balance sheet. The company says its impressive Q3 performance—earnings beat analyst predictions—was driven in part by its cloud business. The segment generated quarterly revenues of $11.4 billion, up 35% from the same period last year, as Pinchai said artificial intelligence offerings helped attract new enterprise customers and win larger deals.
