(Reuters) -Alphabet's Google on Wednesday appointed an insider to lead its future AI-powered product development, as AI enters a new phase of mainstream adoption, according to a memo from CEO Sundar Pichai to company leaders seen by Reuters.

Koray Kavukcuoglu, chief technology officer of Google's DeepMind AI lab, is taking on the newly created title of chief AI architect. He will also become a new senior vice president, reporting directly to Pichai.

Kavukcuoglu, who will move to California from London, will also continue serving as Google DeepMind's CTO, reporting to its CEO Demis Hassabis, Pichai said in the memo. 

"In this expanded role, Koray will accelerate how we bring our world-leading models into our products, with the goal of more seamless integration, faster iteration, and greater efficiency," Pichai said.

Alphabet faces market pressure to demonstrate financial returns on its AI-related capital expenditures, which are expected to hit $75 billion this year, while maintaining its bottom line against the threat of competing AI offerings, as well as antitrust enforcement.

Google said it would put artificial intelligence into the hands of more web surfers and teased a $249.99-a-month subscription for its AI power users at its annual I/O conference in May, along with a flurry of demos that included new smart glasses.

Pichai said in Wednesday's memo that Alphabet was "entering a new phase of the AI platform shift." He told reporters last month that the rise of generative AI was not at the full expense of online search.

Google has since signed a deal to supply computing capacity to its biggest AI rival OpenAI via its cloud service, Reuters exclusively reported on Tuesday, marking a surprising collaboration between two prominent competitors in the AI sector.