The news: Google gave a slew of generative AI (genAI) announcements at its I/O keynote event Tuesday.

• It made several upgrades to its Gemini family of models, unveiling the next-generation Gemini 1.5 Pro that can handle larger prompts and Gemini Live that can engage in voice chats on smartphones.
• Google is also integrating Gemini into Chrome, on Android to replace Google Assistant, and into Maps with a Places API for developers.
• AI Overview, which offers AI-powered summaries, will roll out to US Search users this week.
• An AI-powered Circle to Search feature will let Android users manually point to objects on their camera screens and get genAI information about them.
• An experimental Ask Photos feature will allow users to search their Photos collection for information about people, places, and things.

Delivered as promised: On the heels of OpenAI’s GPT-4o announcement Monday, it’s no surprise that AI is a major theme at Google’s I/O.

• The keynote included a demo of Gemini’s latest multimodal capabilities as a direct response to ChatGPT’s voice mode.
• The voice demo included a variety of use cases and featured smooth audible conversational abilities, which contrasted with OpenAI’s similar demo the day before that was choppy at times.
• Google’s announcements could provide it some marketplace vindication, having been under scrutiny for past mishaps during Gemini demos.
• By showcasing its latest models and how they’ll power existing products with strong consumer reach, Google is demonstrating how it can effectively differentiate itself from rivals.
• The AI Overviews launch reception this week will be an indicator of how well Google can adapt its Search product to meet the demands of the generative AI era.

Stay enterprise-focused: To maintain its competitive edge and satisfy investors, Google will need to focus on translating its AI innovations into profitable products and services at scale.

• The tech giant is making massive capital expenditures on AI, and those investments will need to pay for themselves.
• It will need to figure out how to weave ads into its genAI offerings in ways that don’t turn off users.
• Companies will only reliably spend on genAI services if they can quantify the ROI. To address this, Google could develop robust analytics and measurement tools that help businesses understand the impact of their AI investments on key performance indicators such as customer engagement, conversion rates, and revenue growth.