Alphabet Shares Rise Nearly 1% Premarket After Co Introduces Gemini Enterprise

Alphabet Inc. has been investing heavily in Google Gemini's capabilities this year, and it's making a major new push to expand beyond its consumer chatbot and into the corporate market.

On Thursday, Google $(GOOGL)$ $(GOOG)$ debuted Gemini Enterprise, a comprehensive platform to help businesses integrate artificial intelligence agents into the workplace. Gemini Enterprise replaces and expands on Google's previous Agentspace offering, combining agent-creation capabilities with the latest Gemini models, pre-built agents and increased security.

The platform allows organizations to go beyond simple chatbots to create complex AI agents that can automate multi-step workflows from their own internal data. Gemini Enterprise also features a no-code workbench allowing any employee to create automated workflows regardless of technical background.

Google's Gemini Enterprise launch is the latest development in a trend of large language models moving into the enterprise agent space, and competition is heating up. Earlier this week, International Business Machines Corp. $(IBM)$ announced a partnership with Anthropic to integrate Claude into its software-developer offerings.

The initiative among AI leaders to move into the enterprise space could help with the adoption of AI agents, which hasn't been as rapid as consumer chatbots, according to Dion Hinchcliffe, VP and practice lead of digital leadership and CIO at Futurum Group.

While companies face "intense pressure" from investors to deliver competitive advantages with AI, many of their tech leaders remain skeptical. According to a recent survey by the Futurum Group, 46% of chief information officers don't believe the technology is ready for their regulatory and compliance needs, Hinchcliffe told MarketWatch.

This could play to Google's advantage. The adoption of AI agents could be accelerated by Gemini's latest enterprise offerings, combined with the company's existing distribution channels and familiarity with data security. Google's dual role as a top cloud provider and leading large language model developer also helps it maintain a competitive edge over rivals and provide a catalyst for its shares.

Gemini's biggest competitor, ChatGPT, also offers an enterprise product, but its capabilities are focused more on enhancing employee productivity than automating entire business processes.

"Given investor sentiment around Alphabet has become somewhat linked to Gemini's perceived competitiveness versus ChatGPT, we think progress on Gemini adoption is constructive for the stock," Bank of America analyst Justin Post wrote on Wednesday.