Here's How Google Parent Alphabet Could Boost Revenue From Artificial Intelligence (AI)
Key Points
The vast majority of AI users opt for free tools, which leaves money on the table for businesses.
If Alphabet started showing ads to the free users of its popular Gemini app, it could generate greater revenue.
- 10 stocks we like better than Alphabet ›
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a digital advertising behemoth, having collected $74 billion in the third quarter of 2025 (ended Sept. 30) revenue from this segment of its business. Its billions of users across its various apps provide valuable data that companies want to use to target a wide audience.
This dominant internet enterprise is already positioned as a leader in artificial intelligence (AI). But the Google parent could try to figure out ways to make more money from this new technology.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Alphabet is an expert at monetizing free users
It was first reported in early December that Alphabet will start to display ads to its free users within the Gemini app. However, Google DeepMind CEO Demis Hassabis just mentioned at the World Economic Forum in Davos that there aren't any plans to do this. Whatever happens, there is tremendous potential.
Gemini had 650 million monthly active users in the third quarter. And it's implied that almost all of them work with the free plan. If Alphabet decides to display ads, that could add incremental ad revenue. And it's a way for the business to lean on its area of expertise, which is to monetize free users.
ChatGPT plays a different game
OpenAI's ChatGPT (a Gemini competitor) announced plans to test ads internally, which likely means an external rollout is in the not-too-distant future. Finding ways to generate more revenue is almost a necessity given the huge AI-related expenses OpenAI is accumulating as it develops its business.
But Alphabet is second-to-none when it comes to digital ad prowess. It should be able to mix ads with AI better than anyone else.
This is just another reason Alphabet stock is worth a closer look as an investment.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 26, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
Recommended Articles
