In just one year, Google turns AI setbacks into dominance

Core Insights - Google has made a significant turnaround in the AI sector, transforming from a perceived laggard to a major player in consumer-facing AI within a year [3][12] - The company faced initial setbacks with its AI offerings, particularly with the launch of Bard and subsequent features that drew criticism [4][5] - A strategic internal reorganization and the consolidation of AI development under Google DeepMind have been pivotal in this turnaround [8][9] Company Developments - Google launched Bard in March 2023, which faced ridicule due to errors, leading to downgrades from analysts concerned about its competitive position [4][5] - The company introduced AI Overviews in May 2024, which also faced criticism but marked the beginning of its recovery trajectory [9] - The commercial launch of NotebookLM and the unveiling of video generation tool Veo 3 at the May 2025 developer conference showcased Google's advancements in AI technology [10][11] Market Position - Google's AI tools are now seen as practical and applicable in real-world scenarios, enhancing its competitive edge [11] - The company has positioned itself favorably in the AI equipment market, particularly with the Pixel smartphone featuring advanced AI capabilities [11] - A potential partnership with Apple for integrating Gemini into Siri could open new revenue streams for Google [12] Future Outlook - Google is focusing on engaging consumers with free services to build a user base for its AI offerings, with hopes of monetization in the long term [13] - The company avoided a significant setback by retaining its Chrome browser amid legal challenges, further solidifying its market position [12]