Here's How Google Parent Alphabet Could Boost Revenue From Artificial Intelligence (AI)

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.

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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.

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.