Alphabet Inc. (GOOGL.O) has assigned Anat Ashkenazi as its new Chief Financial Officer, marking a leadership change as the tech giant continues to explore the extent of generative artificial intelligence (AI).
Ashkenazi, a seasoned executive with over two decades at Eli Lilly (LLY.N), is expected to bring a wealth of experience to Google's parent company.
Alphabet Names Anat Ashkenazi as New CFO
The 51-year-old Ashkenazi will replace Ruth Porat, who has been an important figure in Alphabet's financial strategy, according to Bloomberg. Porat's transition to the role of investment chief was announced in July 2023, following her years of driving impressive growth for the company.
Before she became Alphabet's new finance chief, Ashkenazi served Eli Lilly & Co. for over 23 years.
This executive shift comes at a critical juncture for Alphabet, which is heavily investing in AI technologies to stay competitive against industry rivals like Microsoft (MSFT.O).
Alphabet is Exploring More AI Investments
Alphabet's strategic push into AI is seen as a crucial move to capture a significant share of the next big growth wave in the technology sector.
The company's strong first-quarter earnings in April highlighted that AI integrations are boosting demand for its cloud services. However, the escalating costs of developing these advanced features have raised concerns among investors and analysts.
"The AI era is giving us an incredible opportunity to innovate at scale across our core products. I look forward to working with Anat as we invest responsibly to support our next wave of growth," Alphabet CEO Sundar Pichai said.
When Will Ashkenazi Start Her Tenure
According to Reuters, Ashkenazi's appointment will take effect on July 31, with Porat remaining as CFO until then, including through Alphabet's second-quarter earnings report. The market reacted positively to the news, with Alphabet's shares rising 0.8% in premarket trading.
In contrast, Eli Lilly's shares dipped 0.3% following the announcement of Ashkenazi's departure.
Ashkenazi's Legacy at Eli Lilly
Ashkenazi has had a distinguished career at Eli Lilly, joining the company in 2001 and holding various key positions, including finance chief and controller of Lilly Research Laboratories.
In February 2021, she became Lilly's CFO, during which the company's share price quadrupled, significantly outperforming the S&P 500 index. Her tenure saw the launch of several successful treatments, including the diabetes medication Mounjaro, which is also approved for weight loss.
Transition Period at Eli Lilly
Eli Lilly announced that Ashkenazi would remain as CFO and a member of its executive committee through July 2024, ensuring a smooth transition. The company has initiated an internal and external search for her successor.
Ashkenazi's appointment as Alphabet's CFO comes at a time as the company intensifies its focus on AI. Her extensive experience at Eli Lilly is expected to provide strong financial leadership to face the challenges and opportunities in the rapidly evolving tech space.
Earlier this year, Alphabet officially cut ties with Appen, an AI firm responsible in training Google Bard.
