Google CEO Sundar Pichai has reportedly told employees that 2025 will be a "critical" year for the company, emphasizing the need for urgency and faster progress in artificial intelligence (AI) development. According to a CNBC report, Pichai made the remarks during a December 18 strategy meeting, where he and other executives donned ugly holiday sweaters to discuss their priorities for the coming year.

In the audio obtained by CNBC, Pichai stressed the importance of internalizing the urgency of the moment, citing the high stakes involved in AI development. The company is investing heavily in AI, but Pichai acknowledged that Google still has some catching up to do to establish a leadership position in the field.

One area of focus for Google in 2025 will be scaling its Gemini app, which is based on the company's AI model of the same name. Pichai described Gemini as having "strong momentum," but noted that there is still "some work to do" to close the gap with competitors. Scaling Gemini on the consumer side will be a major priority for the company next year, according to Pichai.

The emphasis on AI development is not surprising, given the intense competition in the tech industry. Companies like Google, Microsoft, and Amazon are investing heavily in AI research and development, with the goal of creating more sophisticated and integrated AI systems. The stakes are indeed high, as the company that establishes a leadership position in AI is likely to reap significant rewards in terms of market share and revenue.

Google's focus on AI development is also driven by the need to stay competitive in areas like search, advertising, and cloud computing. The company's core search business is facing increasing competition from AI-powered alternatives, and Google needs to stay ahead of the curve to maintain its market dominance.

In conclusion, Pichai's remarks highlight the importance of 2025 as a pivotal year for Google's AI development efforts. The company's ability to establish a leadership position in AI will have significant implications for its future growth and profitability. As the tech industry continues to evolve, it will be interesting to see how Google's AI strategy unfolds and whether the company can achieve its goals in this critical year.