Alphabet's (GOOG) Google I/O 2025 developer conference was the company's "answering showcase" on how it plans to defend its Search product from newer generative AI rivals, UBS said in a report Thursday.

UBS highlighted the fact that Google's newly launched tab "AI Mode" uses the Search knowledge graph, including shopping and Gmail data, to answer Search queries using text but also maps, images as well as other multimodal formats.

AI Mode "provides a glimpse into Google Search's longer term evolution path," the note said.

Google is using "AI Mode as a ring fenced testing ground to gather user feedback on potential core Search features, while limiting disruption to core Search [Search Engine Results Page] and therefore revenues in its key franchise are safeguarded until genAI features are ready for commercial rollout," UBS said.

The investment firm said, however, that it "remains to be seen whether the rate of monetization on Search AI features, including AI Overviews, will match or exceed that of traditional Search."

UBS has a neutral rating on Alphabet and $186 price target.

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