According to a recent note from JMP Securities, Google's enterprise AI adoption is gaining momentum, as evidenced by the growing use of its Gemini platform.
"We are seeing signs that enterprise adoption of AI is inflecting," stated the firm.
They explained that at the "Gemini at Work" event, Google showcased a 35x increase in Gemini usage, with 75% of daily users reporting that AI enhances their work quality. JMP Securities believes this signals the inflection point in enterprise AI adoption.
The firm says Google has been actively breaking down barriers to AI adoption by securing compliance with SOC 1, 2, 3, and HIPAA standards and building integration partnerships with major players like Salesforce, SAP, Microsoft, and Oracle.
These moves have led to 85 new enterprise use cases over the past six months, which, according to analysts, are driving tangible cost savings and revenue opportunities for businesses.
Analysts also highlight that AI is becoming a critical tool for corporations as they prioritize technological transformation. With Google integrating its AI solutions with first- and third-party data through these partnerships, accuracy and functionality are improving.
For instance, the firm says enterprises have ramped up generative AI usage by 15x, while AI agent adoption has grown by 6x.
Analysts add that Google shared 185 real-world examples of how businesses are integrating AI, with notable use cases including Snap’s multi-modal AI deployment for visual searches and Best Buy using AI to save call center agents valuable time.
While many of these projects are still in their early stages, analysts believe the increasing need for compute power indicates a growing demand for cloud services, particularly Google Cloud.
JMP Securities maintained its Market Outperform rating for Alphabet (NASDAQ:GOOGL) with a $200 price target, citing Google’s leadership in AI and its vast total addressable market.