AI already writes more than 25% of Google’s code, but CEO Sundar Pichai says this is only the beginning.

Parent company Alphabet is already well along with its artificial intelligence plans, with more than 25% of all new code written by AI. This move epitomizes the company’s ambitions for the use of AI technologies at all levels.

For the third quarter of this year, Alphabet showed strong revenue, partly on the performance of its cloud business, which managed to gross quarterly revenues as high as $11.4 billion. This represents an exceptional increase of 35% compared to the same period last year.

One reason for such success is surely Google’s unique way of innovating in AI; due to this, its current customers have adopted its products 30% more than ever. Here, the strategy increases user experience, hence making the users apply the varied offerings developed by Google more frequently. It was also a very strong period for the Search segment, still the biggest driver of revenue at the company, with revenues of $49.4 billion, up 12.3% compared to last year.

According to CFO Anat Ashkenazi, AI is also a very big complement to the search experience, making it really useful to users and getting good feedback, particularly from the younger set. This continuing AI revolution is likely to impact the group’s hiring policy, too, as Alphabet has reduced its headcount by more than 1,000 people from last year. Google has reshuffled and merged teams in line with this new emphasis, adding more people to its core AI team, DeepMind, which has become essential to the company’s future products.

Ashkenazi emphasized that management is working on exactly how AI will help make operations leaner: which processes can be accelerated, where changes should be made, and how resources are freed to try more promising opportunities. That is a very healthy attitude of adapting to the market’s needs while further investing in AI development.

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