(Reuters) - Google-parent Alphabet is expected to report a nearly 14% rise in quarterly revenue, its fourth straight quarter of double-digit growth, driven by steady demand for its artificial intelligence-powered cloud computing services and an uptick in the ad market.

The search giant's second-quarter report on Tuesday, the first among the Big Technology companies this season, could offer further insight into the uptake of AI services, as well as the rising costs associated with the new technology.

At a developer conference in May, Google widely rolled out AI-powered summaries in Search and beefed up its Gemini AI model to better compete with services from OpenAI and Microsoft.

Google is also launching new Pixel devices with AI capabilities next month, moving forward its unveiling event, typically set in fall, after Apple announced in June a slew of AI capabilities and an integration with ChatGPT in the latest iPhones.

"Investors will be looking for continued success in Search, but also for signs of the company adapting to the new world of AI," said Gil Luria, senior software analyst at D.A. Davidson & Co.

"The company will need to show that AI is driving Google Cloud growth, that there are no share losses in Search as users start leaning more on AI chat, and that the new models being built are competitive."

Alphabet's AI investments will also be closely watched. In the January-March period, the company's capital expenditure jumped 91% to $12 billion, rattling some investors even though CEO Sundar Pichai assured that the AI integrations were boosting demand for its cloud and search businesses.

The company's operating expenses in the second quarter ended June likely rose more than 32% to $27.57 billion, according to LSEG data, the highest jump in over two years.

Investors will also have questions around reports that Alphabet is in talks to buy cybersecurity startup Wiz for roughly $23 billion and how that would affect its bottomline.

Alphabet's core businesses are likely to report healthy growth as an improving macro-economic climate gives customers the confidence to invest in cloud computing and spend on advertising.

"Google search spending still held up fairly well ... we think advertisers need to spend as a key offset to inflation," said RBC Capital Markets analyst Brad Erickson.

Media investment firm GroupM raised its 2024 global advertising growth forecast to 7.8% in June, from 5.3% in December, primarily on account of better-than-expected spending in China and the United States.

Analysts also expect strong performance at YouTube, thanks in part to expanded monetization features in its TikTok-styled video offering, Shorts.

Alphabet's second-quarter cloud computing sales and advertising revenue are expected to grow 26.4% and 10.8%, respectively, according to LSEG data, largely similar to the preceding two quarters.

Ad-dependent peer Meta Platforms will report its results next week on Wednesday, July 31.

(Reporting by Yuvraj Malik and Priyanka G in Bengaluru; Editing by Sayantani Ghosh and Shinjini Ganguli)