Bank of America is forecasting that Alphabet will use its annual developer conference on May 19 to introduce a major update to its Gemini large language model, according to a note from analyst Justin Post.
The firm expects Google to present either a next-generation Gemini LLM - possibly labeled version 4 - or a substantial 3.X upgrade. Anticipated technical advances cited in the note include improved reasoning, enhanced coding assistance, stronger multimodal understanding, and expanded long-context capabilities.
Alongside upgraded base models, Bank of America said it expects Google to roll out faster, less expensive "Flash" variants and to introduce improved video, image, and audio generation models. The note also highlights anticipated gains in autonomous software engineering functionality, naming Jules and other coding agents as potential examples of more capable coding assistants.
Beyond model improvements, the bank described a likely push toward deeper agentic functionality embedded across Google’s ecosystem. The note suggests Gemini could be given expanded authority to autonomously complete practical tasks across Chrome, Gmail, Maps, Calendar, Search, and Android. Examples provided include booking reservations, editing calendars, filling forms, and handling shopping workflows.
Bank of America also expects Chrome to obtain AI-powered browsing features that enable Gemini to interact directly with websites and carry out multi-step tasks on behalf of users, while maintaining user control over approvals and transactions.
On the assistant front, the firm outlined expectations for broader capabilities such as persistent memory, improved contextual understanding, live camera interaction, and more proactive assistance. The bank further anticipates additional AI-driven search features that could expand "AI Mode," positioning it as a freely available assistant-like experience with greater personalization, multi-app integration, and transactional functionality.
While these developments describe a potentially significant feature set, Bank of America cautioned that expectations are elevated heading into the event. The note warned that if Google’s announcements do not meet those market expectations, the company’s stock could face near-term pressure. Despite that risk, the firm reiterated its Buy rating on Alphabet shares.
Impacted sectors: Technology platforms, cloud and enterprise AI services, online advertising and consumer internet products.