Caught off guard by the launch of ChatGPT and initially ridiculed for its early stumbles, Google has pulled off an extraordinary turnaround. In just one year, the tech giant has gone from struggling with credibility in artificial intelligence to leading the consumer AI race.

Market analysts had all but written Alphabet off; yet, the company silenced its critics by transforming its AI strategy and launching products that quickly gained global traction. “The market had written off Alphabet in the AI race. That was short-sighted,” said Hargreaves Lansdown analyst Matt Britzman.

In March 2023, Google introduced Bard, its response to ChatGPT, just four months after the latter had shaken the tech world. Bard’s launch was marred by a factual error about the James Webb Space Telescope, sparking widespread criticism.

The company faced another public relations headache in May 2024 when its AI Overviews feature, integrated into Google Search, suggested bizarre answers, such as a “glue pizza recipe” and even eating a rock daily. These missteps underscored the challenges of building trustworthy generative AI tools.

Despite its misfires, Google had long invested in AI, including its 2014 acquisition of DeepMind. However, much of its progress had been confined to back-end platforms rather than consumer-facing services. This left the company appearing complacent compared to rivals.

The tide began to turn in 2024 when Google consolidated its AI teams under Google DeepMind, with Nobel Prize winner Demis Hassabis taking charge. Co-founder Sergey Brin also re-engaged with operations, signalling a renewed commitment.

CEO Sundar Pichai announced that the company was developing its own advanced AI chips, known as TPUs, which are crucial to achieving its vision. “I could see, internally, the trajectory we were on,” he told the Lex Fridman Podcast in June.

While early errors lingered in public memory, Overviews became the first milestone in Google’s comeback, showing the company could adapt and improve.

Momentum accelerated in 2025 with several major launches. NotebookLM, an AI-driven document synthesis tool, made knowledge more accessible, while Veo 3, a video generation platform, impressed the industry with its consistency. Google Search itself evolved into a conversational chatbot through its AI Mode.

The Pixel smartphone became a showcase for Google’s AI capabilities, offering real-time translation and 100x zoom. By mid-September, video generation was live on YouTube, bringing AI creativity directly to consumers.

Google’s Gemini app — boosted by its quirky Nano Banana editing tool climbed to the top of iPhone downloads, even surpassing ChatGPT earlier this month. Analysts see this as proof that Google’s AI tools are now more practical and widely adopted.

Looking Ahead: Partnerships and Monetisation

Google also gained relief in its antitrust battle when a federal judge blocked government demands that it sell off Chrome. Meanwhile, Bloomberg reported Apple is considering integrating Gemini into Siri’s redesign, a move that could open new revenue opportunities.

“Google is playing the long game,” said CCS Insight’s Ben Wood. “It knows that right now, it needs to offer free services to get consumers engaged with Gemini. However, in the longer term, it’s hoped this can be turned into a substantial revenue stream.”

With one of the fastest AI turnarounds in tech history, Google has gone from being mocked to setting the pace in the AI arms race, proving that even giants can reinvent themselves under pressure.