Google says deep AI investments powering ad sales
Google’s parent company, Alphabet, reported first-quarter results for 2025, driven by significant investments in artificial intelligence (AI) that bolstered its core advertising business. The company posted revenues of $90.23 billion and a profit of $2.81 per share. Advertising revenue, which constitutes nearly 75% of Alphabet’s total income, rose by 8.5% to $66.89 billion. This growth was attributed to the integration of AI into Google’s search tools, notably the AI Overviews feature, which now serves 1.5 billion users monthly .
To further instill investor confidence, Alphabet announced a $70 billion stock buyback, increasing its market value by $75 billion. Despite global economic uncertainties, including reduced digital ad spending by major U.S. advertisers, the company maintained its $75 billion capital expenditure guidance for the year. CEO Sundar Pichai emphasized the necessity of continued AI investments to remain competitive, countering narratives suggesting a slowdown in AI infrastructure spending.
Google Cloud also reported a 28% year-over-year revenue increase to $12.26 billion, slightly below analyst expectations. Capital expenditures for the quarter reached $17.20 billion, marking a 43% increase from the previous year, underscoring Alphabet’s commitment to AI development .
Alphabet’s AI advancements have significant implications for the Irish marketing sector. Google Ireland has partnered with CeADAR, Ireland’s national AI center, to support businesses in adopting AI technologies. This collaboration aims to address the AI skills gap, facilitate the implementation of AI solutions, and prepare the workforce for AI integration . Additionally, events like ‘AI Connect’ in Dublin have highlighted AI’s transformative potential in marketing, encouraging Irish professionals to embrace AI-driven strategies . With AI poised to boost Ireland’s GDP by up to €45 billion over the next decade, the marketing industry stands to benefit from increased efficiency and innovation .
Sources: RTÉ
