Alphabet Inc.’s Google (NASDAQ:GOOG) on Tuesday introduced a range of new artificial intelligence tools at its annual I/O developer conference, including AI agents integrated directly into Search and a faster, lower-cost Gemini model aimed at enterprise customers.
The announcements come as Google intensifies competition with rivals including Anthropic and OpenAI in the race to attract high-value corporate AI users.
Google also showcased new AI agents designed to autonomously carry out tasks such as purchasing products, monitoring ticket availability and organising schedules in real time across its ecosystem of consumer services.
“When people use our AI-powered features in Search, they use Search more,” Alphabet chief executive Sundar Pichai said.
Google positions Gemini at the centre of its AI strategy
The I/O conference in Mountain View, California marked Google’s first major AI showcase since the release of the updated Gemini model last winter, which helped the company regain momentum in the intensifying AI race.
Executives used the event to present Google’s long-term vision for artificial intelligence after previous conferences had focused heavily on the disruptive threat posed by emerging AI competitors.
“When we look back at this time, I think we will realize that we were standing in the foothills of the singularity,” said Demis Hassabis, head of Google DeepMind. “It will be a profound moment for humanity.”
Google unveiled multiple tools powered by its Gemini 3.5 model family, including Gemini 3.5 Flash, a model designed specifically for coding and automated workflows. Pichai also confirmed that Gemini 3.5 Pro is scheduled for release next month.
Google cuts AI pricing for enterprise customers
Google also reduced pricing for its premium AI Ultra subscription plan, lowering the monthly cost from $250 to $200. The package provides access to higher usage limits and advanced AI models.
The company additionally introduced a $100-per-month version targeted at developers and professional users.
As competition increasingly centres on enterprise AI spending, Google is emphasising cost efficiency as a key differentiator.
“We’ve heard that many companies are already blowing through their annual token budgets, and it’s only May,” Pichai said.
Pichai added that large corporate customers could potentially save more than $1 billion annually by switching to Google’s AI models, which he said could deliver comparable performance to rival frontier models at roughly one-third of the cost.
Google also introduced a new version of its coding assistant Antigravity, positioning it against Anthropic’s Claude Code platform. The company strengthened its AI coding ambitions further last year by hiring senior staff from AI coding startup Windsurf.
