Google CEO Sundar Pichai, recently emphasized the importance of the year 2025 during a company strategy meeting held in December.
Addressing employees, Pichai alongside other executives highlighted the critical challenges ahead, particularly in Artificial Intelligence.
“I think 2025 will be critical,” Pichai said. “I think it’s really important we internalize the urgency of this moment, and need to move faster as a company. The stakes are high. These are disruptive moments. In 2025, we need to be relentlessly focused on unlocking the benefits of this technology and solve real user problems.”
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This call to action comes as Google navigates one of its most challenging periods since its inception. While the company has seen strong revenue growth in search ads and cloud services, it faces mounting competition, internal cultural challenges, and intensified regulatory scrutiny.
Recall that in September 2024, Britain’s competition watchdog issued a statement of objections over Google’s ad tech practices, which the regulator provisionally found are impacting competition in the U.K. In a statement, the Competition and Markets Authority alleged that the U.S. internet search giant “has harmed competition by using its dominance in online display advertising to favor its own ad tech services.”
Fast forward to November 2024, the U.S. Justice Department asked a federal judge to require Alphabet Inc.’s Google to sell off its Chrome browser. The Justice Department’s actions stem from an August ruling by U.S. District Judge Amit Mehta, which found that Google had illegally monopolized the online search market.
It is however interesting to note that Generative Al has sparked significant competition in Google’s core markets. OpenAl’s ChatGPT has continued to gain momentum, backed by Microsoft and valued at $157 billion. Early this month, OpenAI expanded its ChatGPT search feature to all users, including those using the free version, positioning it as a direct competitor to search engines like Google.
This development signified a significant shift in the search engine landscape, with OpenAl directly challenging established players by offering an Al-powered alternative that combines conversational interfaces with real-time web information.
To maintain its leadership, Google is heavily investing in Al, focusing on its flagship Gemini model. The Gemini app, designed to integrate a suite of Al tools, is poised to become Google’s next major success. Executives aim for it to join the company’s 15 apps that have surpassed half a billion users. “With the Gemini app, there is strong momentum, particularly over the last few months,” Pichai said. “But we have some work to do in 2025 to close the gap and establish a leadership position there as well.
Pichai also urged employees to remain “scrappy” as Google continues its cost-cutting measures. After laying off 6% of its workforce in 2023, the company remains focused on efficiency. “Building big, new business” is a top priority, Pichai emphasized. Beyond Al, the company is striving to adapt and innovate while addressing user needs and securing its leadership position.
As Google steps into 2025, the stakes couldn’t be higher. Success will depend on the company’s ability to navigate fierce competition, regulatory pressures, and rapid advancements in Al technology.