Alphabet (GOOGL.O) shares saw a 3% increase on Friday following a positive earnings report that highlighted the company’s successful investments in artificial intelligence (AI), driving growth in its core advertising business.

The better-than-expected results came amid investor concerns about competition and potential tariff-related pressures on global trade. Google’s advertising revenue grew by 8.5% in the first quarter, reassuring market participants that the digital ad industry is resilient despite the slowdown in U.S. ad spending.

This boost in advertising revenue marks a key development for Alphabet as its AI-driven strategies continue to pay off, suggesting a strong outlook for the tech giant.