This Week in AI: Google Search’s ‘AI Mode,’ T-Mobile Parent’s AI Phone

This week in artificial intelligence, Google debuted two updates for its AI features, T-Mobile parent company Deutsche Telekom plans to introduce an AI phone, Gap is pursuing AI innovations, and Amazon is developing a new reasoning model and creating an agentic AI unit.

Google Expands AI Overviews and Introduces AI Mode

Google is incorporating more generative AI into search with the introduction of AI Mode, as it defends its core business from being siphoned away by AI chatbots like ChatGPT.

AI Mode is meant to provide a true conversational AI assistant, performing more advanced reasoning than Google’s AI Overviews, which debuted to mixed reviews.

AI Mode is especially helpful for questions that need further exploration, comparisons and reasoning, Robby Stein, vice president of product for Google Search, said Wednesday (March 5). AI Mode also is multimodal, meaning it can understand other types of content besides text. Users can ask follow-up questions.

Google said the first users for AI Mode will be Google One AI Premium subscribers. Others can join a waitlist.

T-Mobile Parent to Debut ‘AI Phone’

Deutsche Telekom, T-Mobile’s parent company, announced Monday (March 3) that it is planning to launch its AI Phone next year.

With a price tag under $1,000, the device aims to natively incorporate AI, meaning AI will be embedded from the ground up instead of bolted on. The AI Phone will integrate Perplexity’s AI assistant systemwide. It will be accessible from the lock screen or through a double press of the power button.

The phone’s AI capabilities will let users book taxis, make restaurant reservations, translate in real time, and perform various other functions through voice commands or text input. Deutsche Telekom partnered with Google Cloud AI, ElevenLabs and Picsart to add more capabilities to the device.

The phone will be unveiled later this year and start shipping in 2026. It will be rolled out in Europe first.

Gap Embraces AI Innovation

Gap CEO Richard Dickson said during the company’s earnings call Thursday (March 6) that the past year has been spent “fixing the fundamentals” and now the retailer is ready to focus on “continuous improvement through innovation.”

Gap is pursuing innovations in AI and other areas, he said. The company formed an Office of AI that is focused on AI innovation across its operations.

“In 2025, we will be developing AI monetization opportunities relative to the consumer experience, product to market, as well as organizational productivity,” Dickson said. “Now, having organized the various ways we can use AI to enable value creation, we’re prepared to mobilize against this framework with intention.”

Gap Chief Financial Officer Katrina O’Connell said during the call that the company is using AI to, among other things, “create more elevated experiences for our customers with things like personalization.”

Amazon Works on Reasoning Model, AI Agents

Amazon is reportedly developing a new reasoning model under its Nova family of foundation models, Business Insider reported Tuesday (March 4).

The model could debut as soon as June and aims to be more cost-efficient while performing on par with top AI models in tasks like math and science. It is supposed to be a hybrid reasoning model that combines fast responses with deeper, more complex analysis.

Anthropic’s Claude 3.7 Sonnet, which came out in late February, is a hybrid reasoning model that switches from fast responses to slower, more reasoned replies depending on the task at hand.

Meanwhile, Amazon also said Tuesday that it is creating an agentic AI unit at Amazon Web Services (AWS).

These moves exemplify Amazon’s intensified focus on advancing its AI capabilities, positioning the eCommerce giant as a contender in the AI race.

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