Google: JMP Securities Indicates Signs of Increased Enterprise Adoption of AI

According to a recent note from JMP Securities, the adoption of AI in enterprises is accelerating, particularly through the use of Google’s Gemini platform.

The firm indicated that signs of this growth are evident, stating, “We are seeing signs that enterprise adoption of AI is inflecting.” At the recent “Gemini at Work” event, Google reported a remarkable 35-fold increase in Gemini usage, with 75% of daily users noting that AI improves their work quality. JMP Securities views this as a significant turning point for enterprise AI adoption.

The firm highlights that Google has been working to eliminate barriers to AI implementation by ensuring compliance with SOC 1, 2, 3, and HIPAA standards. Additionally, Google has formed integration partnerships with major companies such as Salesforce, SAP, Microsoft, and Oracle.

As a result of these initiatives, there have been 85 new enterprise use cases developed in the past six months, which analysts say are leading to real cost savings and revenue opportunities for businesses.

Moreover, analysts point out that AI is becoming an essential tool for organizations focused on technological transformation. Through its partnerships, Google is integrating its AI solutions with both first- and third-party data, enhancing accuracy and functionality.

For example, enterprises have increased their use of generative AI by 15 times, and the adoption of AI agents has grown sixfold.

Additionally, Google shared 185 real-world examples showcasing how businesses are integrating AI. Notable instances include Snap’s implementation of multi-modal AI for visual searches and Best Buy utilizing AI to optimize call center operations.

While many of these initiatives are still in the nascent stages, analysts believe the rising demand for computing power suggests a growing need for cloud services, especially Google Cloud.

JMP Securities has maintained its Market Outperform rating for Alphabet with a price target of $200, citing Google’s leadership in AI and its expansive total addressable market.