Alphabet’s GOOGL Google is leaving no stone unturned to bolster its generative AI capabilities on the back of new product launches.
Recently, Google launched MedLM, a family of generative AI models intended for the healthcare industry.
MedLM, currently available to Vertex AI customers, includes two models offering medical documentation testing, drug development research and chatbot provider identification.
Alphabet is expected to gain solid traction across practitioners, researchers and health and life science organizations on the back of its latest move.
Moreover, the latest launch will aid the company in strengthening its footing in the global generative AI in the healthcare market.
Per a Grand View Research report, the global generative AI in the healthcare market is expected to witness a CAGR of 36.7% between 2023 and 2030.
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Stiff Competition in the Healthcare Space
We note that the latest launches will allow this Zacks Rank #3 (Hold) company to strengthen its competitive edge against rivals like Amazon AMZN, Microsoft MSFT and Oracle ORCL, which are also making substantial efforts to strengthen their footing in the healthcare sector by leveraging generative AI capabilities.
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Amazon’s cloud business, Amazon Web Services (“AWS”), launched AWS HealthScribe, which allows healthcare software vendors to create clinical applications using speech recognition and generative AI for automatic clinical documentation generation.
Further, it creates doctor-patient discussion transcripts, extracting details and summarizing them for electronic health record systems, converting them into patient notes for analysis.
Meanwhile, Microsoft’s cloud business Azure introduced new capabilities to free up clinicians’ information, including patient timelines and clinical report simplification using generative AI, enabling healthcare professionals to extract and organize unstructured data for better understanding.
Moreover, Microsoft subsidiary, Nuance Communications, launched Dragon Ambient eXperience Copilot, an automated clinical documentation tool for healthcare and life science customers, which automatically drafts clinical summaries in seconds.
Oracle, on the other hand, unveiled patient-facing tools, including generative AI answers, voice commands for appointment scheduling and chats with clinicians to remind patients about lab results.
Expanding Healthcare Offerings
The latest move is in sync with Alphabet’s deepening focus to solidify its footing in the healthcare space.
Notably, Google launched Open Health Stack, an open-source program for developers to create health-related apps, including an Android Software Developer Kit (SDK) and design guidelines.
Further, these open-source tools are designed to assist technologists in developing apps for rural healthcare workers to access population health data.
Additionally, Google introduced two AI-powered life sciences solutions, Target and Lead Identification Suite and Multiomics Suite, to expedite drug discovery and precision medicine for biotech, pharmaceutical and public sector organizations.
Expanding healthcare offerings will boost the company’s portfolio strength, potentially enhancing its overall financial performance in the upcoming period. This, in turn, will likely instill investor optimism in the stock.
Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.
Alphabet has gained 49.5% on a year-to-date basis compared with the industry’s growth of 51.3%.
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