Facts

• Alphabet's Google on Wednesday announced the launch of two new advertising tools powered by artificial intelligence (AI) that will automatically find the best ad placements for companies across the web.
• One of the tools, Demand Gen, allegedly removes the need for advertisers to manually determine where to place ads, instead using its knowledge of users and their behavior to deliver the most impact.
• Additionally, Google's Video View will allow brands to maximize viewership across several formats within a single campaign, with preliminary testing reportedly finding that brands received 40% more views on average with the tool.
• On the same day, the company announced new features that use generative AI to help online shoppers by showing clothes on a wide selection of body types in varying angles, and by finding similar clothing pieces across the web.
• Google has been rapidly developing AI products to compete with Microsoft-backed OpenAI's ChatGPT, and has annonuced a host of generative AI products based off of large language models (LLMs). In May, Google unveiled its PaLM 2 LLM and has said it's working on an AI image generation product.
• In Q4 of 2022, Google's advertising revenue decreased by 4%, dragging down the total revenue growth for their parent company to 1%. Alphabet's earnings reports show the slippage continuing into 2023, with the company betting big on short-form video advertising.