After early missteps and public mockery over its generative AI efforts, Google has achieved a remarkable turnaround in just one year, emerging as a leading force in consumer-facing AI. Many had doubted Alphabet’s position in the AI race. Analyst Matt Britzman of Hargreaves Lansdown called the skepticism “short-sighted.”

 

In March 2023, Google launched its ChatGPT competitor, Bard, only four months after the original version of ChatGPT captured global attention. However, Bard’s debut stumbled when it incorrectly answered a question about the James Webb Telescope, drawing widespread ridicule. Analysts responded by downgrading Alphabet, fearing ChatGPT would challenge Google Search’s long-standing dominance.

 

By May 2024, Google introduced AI Overviews, a new feature in Google Search. Despite generating further online jokes—such as recommending a glue pizza recipe or suggesting eating a rock daily—the launch signaled the beginning of the company’s recovery.

 

Google had invested heavily in AI for over a decade, including acquiring DeepMind in 2014 and publishing influential research that inspired ChatGPT. Yet the company often focused on enhancing its own platforms rather than delivering direct services to consumers, according to CCS Insight analyst Ben Wood. Baird analyst Ted Mortonson added that Google’s leadership had been “caught flat-footed” and had grown “too complacent” about their AI edge.

 

The Turnaround

 

In response, Google began significant internal changes. Co-founder Sergey Brin returned to the Googleplex, and the company reorganized its AI efforts. In spring 2024, all AI development was unified under the DeepMind brand, led by Nobel laureate Demis Hassabis. CEO Sundar Pichai explained on the Lex Fridman Podcast that bringing these teams together “took time.”