Google CEO is Worried About 2025
Jeriel Isaiah Layantara
CEO & Founder of Round Bytes
Recently, Sundar Pichai gave a speech to Google employees about 2025, and how important a year they are going to have with unique challenges. Pichai asked everyone to work faster and be more focused. Pichai said Google was dealing with challenging competition, regulations from governments, and technology with Artificial Intelligence (AI) was moving fast. As seen in video footage from CNBC, Pichai said that the technology space was going to have a "disruptive moment" in 2025.
"In 2025 we must relentlessly focus on unlocking this technology's benefits and solve real user problems" stated Pichai. He wants Google to move quickly to stay relevant and useful in a dynamic and quickly changing world.
Government Rules
One of the reasons Pichai is anxious is the increasing pressure from governments. Google is facing a number of significant legal disputes that could alter the way it does business.
Monopolisation of Search
In August 2024, a U.S. federal judge ruled the U.S. federal court that Google had an illegal monopoly over the internet search market, prompting the U.S. Department of Justice (DoJ) to potential for the judge to order Google to divest the Chrome browser division.
This would be extremely impactful, given the popularity of Google Chrome. In October 2024, Chrome accounted for approximately 66.7% of the global browser market share. Chrome is an extremely important element to Google advertising business, as it cements the online experience for users. In its third quarter 2024, Google advertising business covered $65.9 billion, out of the total revenues of $88.3 billion reported. If Google was requested to divest from Chrome, it poses a serious risk to a proportion of its revenues. The court will consider the remedies in April 2025, and the court's final decision is expected by August 2025.
Online Advertising
The DoJ also accused Google of monopolizing the online advertising market. Even if the trial concluded in September 2024, they've yet to hear from the judge. The United Kingdom raised similar concerns about Google ad techniques.
Pichai understands that size and success mean these problems will exist. He believes it is vital for the company to remain focused even with challenges.
AI Race
A major concern for Google is the rapid emergence and evolution of AI. Both traditional search and ways of finding information are evolving with the rise of new AI tools.
New Competitors
Generative AI tools like ChatGPT, which became popular have presented users with further avenues in order to get answers. There is no need to check a traditional search page for information. OpenAI released its own version of a search feature ChatGPT Search in July 2024 with mass release of the feature in December 2024. There are also others like Perplexity AI that provide AI based search services which summarize the information, but also provide a few sources in line with those query requests.
Google Activity: Gemini
In order to retain its lead as an AI company, Google is pouring lots of resources into its own AI platform Gemini. The Gemini app, which contains the chatbot, will be its major deliverable product. Pichai stated that improving Gemini for everyday users will be the largest target in 2025. He has asked for Gemini to expand and penetrate its DNA via 500 million users.
Delivering Great Product
Pichai did admit that Google has been slow in a few areas of AI. But he also said "You don't always have to be first, but you need to execute well for sure, and be best in class as a product". He emphasized that in 2025 is to ensure Google builds great products.
Staying "Scrappy" and Efficient
To meet these large challenges, Pichai asked his employees to be "scrappy." He characterized "scrappy" as having smarts, resourcefulness, and creative problem solving like Google founders Larry Page and Sergey Brin did in their early days, and he sought to remind them that limitations can create new and better ideas.
Efficiency would also be essential, after reducing about 6% of its 2023 workforce to cut expenses, Pichai stated, "Not all problems are solved through headcount" implying that Google needed to do more with what they have.
To summarize, 2025 is a crucial year for Google. The company will be fighting significant legal battles, which could change the structure of its business while simultaneously racing to innovate in AI and fend off new competitors. The focus for Pichai employees, could not be clearer: focus, speed, and creativity will be paramount to Google success during a challenging time.
