Alphabet Inc. Embraces EU's AI Regulations, Boosts Productivity

In July 2025, Alphabet Inc. announced that it will sign the European Union's code of practice to help companies comply with the bloc's landmark artificial intelligence rules. The voluntary code aims to offer legal certainty to signatories on how to meet requirements under the Artificial Intelligence Act (AI Act).

"We do so with the hope that this code, as applied, will promote European citizens' and businesses' access to secure, first-rate AI tools as they become available," said Kent Walker, Alphabet's chief legal officer and global affairs president.

Separately, Google executives have been urging the company's employees to be more innovative with their use of artificial intelligence as the tech giant looks for ways to cut down costs. CEO Sundar Pichai and executive Brian Saluzzo conveyed this message at a meeting last week, emphasizing the need to "accomplish more by taking advantage of this [AI] transition to drive higher productivity."

Alphabet also revealed in its recent earnings report that it plans to spend $85 billion on capital expenditures in 2025, up from the previous $75 billion. "We are competing with other companies in the world. There will be companies which will become more efficient through this moment in terms of employee productivity, which is why I think it's important to focus on that," the executives said.