Google boosts AI in coding and cloud growth

Google’s Q1 2025 earnings reveal strong AI adoption and 12% year-over-year revenue growth, reaching $90.2 billion with a 46% rise in net income.
Over 30% of Google’s code is now AI-assisted, with developers embracing agentic workflows to boost productivity, according to CEO Sundar Pichai.

More than 30% of all code at Google is now written with the help of AI, according to CEO Sundar Pichai during Alphabet’s Q1 2025 earnings call.

Developers are embracing AI-generated suggestions in nearly one out of every three code changes, thanks to improved models and the rollout of agentic workflows—AI systems designed to manage complex, multi-step tasks.

Pichai noted that AI-assisted coding is expanding across the company, with customer service teams leading the way in adoption.

Alphabet reported strong financial results, with quarterly revenue climbing 12% year-over-year to $90.2 billion. Net income rose sharply by 46% to $34.5 billion, and earnings per share jumped 49%.

While there was a slight quarterly dip in revenue from the previous quarter, Google’s core advertising business, YouTube, and Google Cloud all contributed to year-on-year growth. Cloud revenue, in particular, increased 28% due to surging demand for AI and infrastructure products.

The recently released Gemini 2.5 Pro model was described by Pichai as ‘state-of-the-art’, outperforming rivals across benchmarks and landing the top spot on Chatbot Arena. Gemini models are now integrated across 15 Google products used by more than half a billion people.

Features like Gemini Live and AI-powered camera tools are being rolled out on Android and Pixel devices, while Google Assistant will also receive a Gemini upgrade later this year.

Instead of slowing down, Google is accelerating its AI development with initiatives like Gemini Robotics Models, the AI Co-Scientist for research, and the continued success of AlphaFold, used by over 2.5 million scientists.

With over 200% growth in users of AI Studio and Gemini API, and more than 140 million downloads of Gemma models, Google is clearly positioning AI at the centre of its future across products, platforms, and research.

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