Parent Company of Retail Luxury Brands Leverages Product Recommendation Algorithms and Integrated Client Platform to Entice Customers

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Whether they meet customers online, offline, or in some combination, retailers share a big problem: How can they offer the right choices, when and how the customer wants, without overwhelming (and often losing) the buyer?
More than anything, this is an information problem. As such, it’s a good candidate for using artificial intelligence (AI) for greater success. Here’s how Richemont tackled the problem.
Richemont owns a portfolio of leading luxury goods brands, recognized for their distinctive heritage, craftsmanship and creativity. It has strengths and specialties in jewelry (Cartier, Van Cleef & Arpels), luxury watches (IWC, Jaeger-LeCoultre, Panerai, Vacheron Constantin), and fashion & accessories (Chloé, Montblanc, dunhill).
People shop for such goods in a number of ways, from online searching to individual meetings in boutiques, and Richemont must be prepared for every context. Understanding which shoppers are likely to buy or repurchase, when to engage directly, and what creation to suggest enables sales associates to spend quality time with clients, engaging at the right time with meaningful advice. Richemont solves these retail challenges with an integrated Client Platform leveraging Google Cloud and its AI/ML capabilities.
Enticing peoples’ desires with Machine Learning
Richemont began by posing two questions:
- Which prospects or clients need extra attention? Specifically, who is likely to convert or to repurchase?
- What would be meaningful items to suggest to each client and prospect?
Both questions were addressed with machine learning algorithms. Their challenges included deploying and monitoring algorithms at scale for several brands across the globe, while addressing the specific business needs for each brand. For instance, it may be more relevant to recommend in-season items for fashion brands, while for watchmakers it is more about cross-fertilization across each brand’s iconic creations.
This graph summarizes the prediction process implemented by Richemont:

Engagement data (email opened, clicked, SMS/MMS, website visits…) was found crucial to predict conversion of prospects for whom per definition no transaction history is available. For website interactions Richemont leverages the Google x Salesforce Connector.
To deploy the Machine Learning algorithms and to monitor them, Richemont leveraged Vertex AI, along with BigQuery, Cloud Functions and Google Storage, all orchestrated with Google Cloud Composer.
The role of product recommendation algorithms
Richemont used the deep learning library TensorFlow Recommenders to perform the product recommendation tasks. This library enables companies to build state of the art deep learning algorithms to achieve relevant and robust predictions.

Unlocking client value with integrated technology
Richemont’s innovations show how technology that considers many parts of the customer experience creates more value. In this case, the company used in store applications to invite people with a strong propensity to buy for boutique visits, while others at a different point in the purchasing journey were offered different options more suited to their tastes and inclinations.This solution, now deployed across 11 brands in over 25 countries, shows just one way that AI can improve customer experience, for better customer loyalty.
Key to the process, here and elsewhere, is the way a retailer and its partners put customer understanding at the center of the process. As AI becomes more important not only in retail, but in every industry, this human understanding will become even more important as a fundamental organizing principle. Much is changing, but once again, the winners will be the companies that focus best on their customers.
Google Dataflow Named Leader in The 2021 Forrester Wave™: Streaming Analytics

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We are excited to announce that Google has been named a Leader in The Forrester Wave™: Streaming Analytics, Q2 2021 report. Thank you to our strong community of customers and partners for working with us to deliver a customer focused product. We believe Forrester’s recognition is an acknowledgement of our leadership across an integrated set of capabilities that rely on data to drive transformation. We were also honored to be named a leader in The Forrester Wave™: Cloud Data Warehouse, Q1 2021.
Forrester gave Dataflow a score of 5 out of 5 across 12 different criteria and according to the report: “Google Cloud Dataflow has strengths in data sequencing, advanced analytics, performance, and high-availability. Google Dataflow’s sweet spot is for enterprises that have a preponderance of real-time data generated on Google Cloud Platform or wish to simplify all data processing by using a single platform that unifies both streaming and batch jobs.”
Harnessing the power of real-time data
The speed with which businesses are able to respond to change is the difference between those that successfully navigate the future and those that get left behind. In order to accelerate their digital transformation, reimagine their business and leverage the power of real-time data, today’s data leaders require a streaming analytics platform that provides both depth and breadth.
Cloud Pub/Sub and Cloud Dataflow, based on more than a decade of experience in internet scale systems for Google’s own needs, provide customers with a reliable, scalable, performant platform. In addition, we’ve designed these products for ease of use to make streaming analytics accessible to more users, which is why customers such as Sky and others from across all industries use Dataflow to run streaming analytics workloads.
5 out of 5 across key streaming analytics criteria
While Forrester gave Dataflow a score of 5 out of 5 in 12 criteria, the product achieved the highest possible scores in areas that are top of mind for our customers.

We continue to be focused on solving problems that matter to you. For example, just in the last month we announced Dataflow Prime and Auto Sharding for BigQuery – two new auto tuning capabilities that bring efficiency and simplicity to your streaming pipelines.
Dataflow achieves highest score possible in strategy
With Google, organizations gain an industry leading product and a partner that has the vision and strategy to help you tackle new business challenges and provide delightful experiences to your customers.

In summary, we are honored to be a Leader in The Forrester Wave™, Streaming Analytics, and look forward to continuing to innovate and partner with you on your digital transformation journey.
Download the full report: The Forrester Wave™: Streaming Analytics, Q2 2021 and check out these smart analytics reference patterns. To learn more about Dataflow, visit our website and get to know the product by taking an interactive tutorial. You can also watch recordings from the Data Cloud Summit event (May 2021), where we provided an in-depth view of new product innovations in Dataflow and other data analytics products.
Delivering 10X Improvement to Risk and Regulatory Reporting Through Cloud and AI
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Enterprise agility and the ability to innovate, adapt and respond quickly to the ever-changing risk and regulatory landscape is no longer a choice, but the cornerstone of successful digital transformation and commercial growth. Traditional access to and ways of managing data invariably create challenges in dealing with multiple data repositories, reconciliations, fire-drills, etc.
In response, the move to cloud is increasing significantly. It enables risk analytics and regulatory reporting at scale in a secure environment with data storage, management and encryption capabilities as a standard. In addition, as regulatory reporting requirements become more granular, machine learning can help facilitate new insights and allow for risk management to become more embedded into operational processes.
This webinar will address the day-to-day challenges in risk management and regulatory compliance, while also exploring how technological innovations can provide massive improvements and potential.
Key themes
- Real-life data challenges in the eyes of risk managers: can compliance, fraud detection and identifying liquidity positions be improved through the use of AI?
- Innovative approaches to streamline regulatory reporting to derive deeper customer insights from data at the moment of truth.
- Reimagining operations: how to modernise the data infrastructure to accommodate data explosion, drive flexibility and deliver a more cost effective outcome.
How Vertex AI NAS is Suitable for Most Advanced ML Workloads

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Vertex AI launched with the premise “one AI platform, every ML tool you need.” Let’s talk about how Vertex AI streamlines modeling universally for a broad range of use cases.
The overall purpose of Vertex AI is to simplify modeling so that enterprises can fast track their innovation, accelerate time to market, and ultimately increase return on ML investments. Vertex AI facilitates this in several ways. Features like Vertex AI Workbench, for example, speed up training and deployment of models by five times compared to traditional notebooks. Vertex AI Workbench’s native integration with BigQuery and Spark means that users without data science expertise can more easily perform machine learning work. Tools integrated into the unified Vertex AI platform, such as state of the art pre-trained APIs and AutoML, make it easier for data scientists to build models in less time. And for modeling work that lends itself best to custom modeling, Vertex AI’s custom model tooling supports advanced ML coding, with nearly 80% fewer lines of code required (compared to competitive platforms) to train a model with custom libraries. Vertex AI delivers all this while maintaining a strong focus on Explainable AI.
Yet organizations with the largest investments in AI and machine learning, with teams of ML experts, require extremely advanced toolsets to deliver on their most complex problems. Simplified ML modeling isn’t relegated to simple use cases only.
Let’s look at Vertex AI Neural Architecture Search (NAS), for instance.
Vertex AI NAS enables ML experts at the highest level to perform their most complex tasks with higher accuracy, lower latency, and low power requirements. Vertex AI NAS originates from the deep experience Alphabet has with building advanced AI at scale. In 2017, the Google Brain team recognized we need a better way to scale AI modeling, so they developed Neural Architecture Search technology to create an AI that generates other neural networks, trained to optimize their performance in a specific task the user provides. To the astonishment of many in the field, these AI-optimized models were able to beat a number of state of the art benchmarks, such as ImageNet and SOTA mobilenets, setting a new standard for many of the applications we see in use today, including many Google-internal products. Google Cloud saw the potential of such a technology and shipped in less than a year a productized version of the technique (under the brand AutoML). Vertex AI NAS is the newest and most powerful version of this idea, using the most sophisticated innovation that has emerged since the initial research.
Customer organizations are already implementing Vertex AI NAS for their most advanced workloads. Autonomous vehicle company Nuro is using Vertex AI NAS, and Jack Guo, Head of Autonomy Platform at the company, states, “Nuro’s perception team has accelerated their AI model development with Vertex AI NAS. Vertex AI NAS have enabled us to innovate AI models to achieve good accuracy and optimize memory and latency for the target hardware. Overall, this has increased our team’s productivity for developing and deploying perception AI models.”
And our partner ecosystem is growing for Vertex AI NAS. Google Cloud and Qualcomm Technologies have collaborated to bring Vertex AI NAS to the Qualcomm Technologies Neural Processing SDK, optimized for Snapdragon 8. This will bring AI to different device types and use cases, such as those involving IoT, mixed reality, automobiles, and mobile.
Google Cloud’s commitments to making machine learning more accessible and useful for data users, from the novice to the expert, and to increasing the efficacy of machine learning for enterprises are at the core of everything we do. With the suite of unified machine learning tools within Vertex AI, organizations can take advantage of every ML tool they need on one AI platform.
Ready to start ML modeling with Vertex AI? Start building for free. Want to know how Vertex AI Platform can help your enterprise increase return on ML investments? Contact us.
How to Choose the Right ML Model for Your Applications

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Many of our customers want to know how to choose a technology stack for solving problems with machine learning (ML). There are many choices for these solutions available, some that you can build and some that you can buy. We’ll be focusing on the build side here, exploring the various options and the problems they solve, along with our recommendations.
The best ML applications are trained with the largest amount of data
But first, keep in mind an important concept: the quality of your ML model improves with the size of your data. Dramatic ML performance and accuracy are driven by improvements in data size, as shown in the graph below. This is a text model, but the same principles hold for all kinds of ML models.

The X axis represents the size of the data set and the Y axis is the error rate. As the size of the data set increases, the error rate drops. But notice something critical about the size of the data set — the x-axis is2^20, 2^21, 2^ 22, etc. In other words, each new tic here is a doubling of the data set size. To get a linear decrease in your error rate you need to exponentially increase the size of your data set.
The blue curve in the graph represents a slightly more sophisticated ML model than the orange curve. Suppose you are deciding between two choices: create a better model or double the data set size. Assuming that these two choices cost the same, it’s better to keep gathering more data. It’s only when improvements due to data size increases start to plateau that it becomes necessary to build a better model.
Secondly, ML systems need to be retrained for new situations. For example, if you have a recommendation system in YouTube and you want to provide recommendations in Google Now, you can’t use the same recommendations model. You have to train it in the second instance on the recommendations you want to make in Google Now. So even though the model, the code, and the principles are the same, you have to retrain the model with new data for new situations.
Now, let’s combine these two concepts: you get a better ML model when you have more data, and an ML model typically needs to be retrained for a new situation. You have a choice of either spending your time building an ML model or buying a vendor’s off-the-shelf model.
To answer the question of whether to buy or whether to build, first determine if the buyable model is solving the same problem that you want to solve. Has it been trained on the same input and on similar labels? Let’s say you’re trying to do a product search, and the model has been trained on catalog images as inputs. But you want to do a product search based on users’ mobile phone photographs of the products. The model that was trained on catalog images won’t work on your mobile phone photographs, and you’d have to build a new model.
But let’s say you’re considering a vendor’s translation model that’s been trained on speeches in the European Parliament. If you want to translate similar speeches, the model works well as it uses the same kind of data.
The next question to ask: does the vendor have more data than you do? If the vendor has trained their model on speeches in the European Parliament but you have access to more speech data than they have, you should build. If they have more data, then we recommend buying their model.
Bottom line: buy the vendor’s solution if it’s trained on the same problem and has access to more data than you do.
Technology stack for common ML use cases
If you need to build, what is the technology stack you need? What are the skills your people need to develop? This depends on the type of problem you are solving. There are four broad categories of ML applications: predictive analytics, unstructured data, automation, and personalization. The recommended technology stack for each is slightly different.
Predictive analytics
Predictive analytics includes detecting fraud, predicting click-through rates, and forecasting demand.
Step one: build an enterprise data warehouse
Here, your data set is primarily structured data, so our recommended first step is to store your data in an enterprise data warehouse (EDW). Your EDW is a source of training examples and product histories tracked over time, and can break down silos and gather data from throughout your organization.
Step two: get good at data analytics
Next, you’d build a data culture, get skilled at data analytics, start to build dashboards, and enable data-driven decisions. At this point, you have all of the data and you know which pieces are trustworthy.
Step three: build ML
From your EDW, you can build your models using SQL pipelines. We recommend using BigQuery ML when doing ML with the data in your EDW. If you want to build a more sophisticated model, you can train TensorFlow/Keras models on BigQuery data. A third option is AutoML tables for state-of-the-art accuracy and for building online microservices.
Unstructured data
Examples of how our customers use ML to gain insights from unstructured data include annotating videos, identifying eye diseases, and triaging emails. Unstructured data can include videos, images, natural language, and text. Deep learning has revolutionized the way we do ML on unstructured data, whether you’re looking at language understanding, image classification, or speech-to-text.
For unstructured data, the models you use will employ deep learning. Here, the ROI heavily favors using AutoML. The amount of time that you’d spend trying to create a new ML model from scratch is almost never worth it. You can spend your money more effectively collecting more data than trying to get a slightly better model. Regardless of the type of unstructured data, our recommendation is to use AutoML for small and medium size data sizes.
But AutoML has a limit to scale. At some point, the size of your data set is going to be so large that architecture search is going to get really expensive. At that point, you may want to go to a best-of-breed model with custom retraining from TensorFlow Hub, for example. If you have data sets that are in the millions of examples, you can build your own custom neural network (NN) architectures. But determine if your data set size has started to plateau, by plotting a graph similar to the one at the top of this post. Build a custom NN architecture only after you’ve plateaued, where increasing amounts of data won’t give you a better model.
Automation
Some examples of how customers are using ML for automation include scheduling maintenance, counting retail footfall, and scanning medical forms. The key thing to keep in mind as you pick a technology stack for these problems is that you’re not building just one ML model. If you want to schedule maintenance orwant to reject transactions, for example, you’ll need to train multiple linked models.
Instead of individual models, think in terms of ML pipelines, which you can orchestrate using all of the technologies already mentioned. Then you have three choices for operationalizing, with three levels of sophistication.
- Vertex AI has turnkey serverless training and batch/online predictions. This is what is recommended for a team of data scientists. .
- Deep Learning VM Image, Cloud Run, Cloud Functions or Dataflow feature customized training and batch/online predictions. This is what is recommended if the team consists of data engineers and scientists.
- Vertex AI Pipelines are fully customizable and recommended for organizations with separate ML engineering and data science teams.
When doing automation, the individual models that you chain together into a pipeline will be a mix – some will be prebuilt, some will be customized, and others will be built from scratch. Vertex AI, by providing a unified interface for all these model types, simplifies the operationalization of these models.
Personalization
ML application examples of personalization include customer segmentation, customer targeting, and product recommendations. For personalization, we again recommend using an EDW, because customer segmentation uses structured marketing data. For product recommendations, you will similarly have prior purchases and web logs in your EDW., You can power clustering applications, or recommendation systems like matrix factorization, and create embeddings directly from your EDW for sophisticated recommendation systems.
For specific use cases, choose the technology stack based on your data size and scope. Start with BigQuery ML for its quick, easy matrix factorization approach. Once your application proves viable and you want a slightly better accuracy, then try AutoML recommendations. But once your data set grows beyond the capabilities of AutoML recommendations, consider training your own custom TensorFlow and Keras models.
To summarize, successful ML starts with the question, “Do I build or do I buy?” If an off-the-shelf solution exists that was trained with similar data and with access to more data than you have, then buy it. Otherwise build it, using the technology stack recommended above for the four categories of ML applications.
Learn more about our artificial intelligence (AI) and ML solutions and check out sessions from our Applied ML Summit on-demand.

How Google Helped the Indian Govt Choose Airport Sites: The Inside Story
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Setting out a plan for facility locations is a classic challenge for organizations of all shapes and sizes. This is the case for companies around the world—from retailers to governments and corner stores to department stores.
But, in India, it’s an especially hard problem to crack.
Healthy returns and high efficiency sit at the core of both public and private entities, so leaders are continuously reaching for the optimal point where projected demand meets ROI.
Traditionally, demographic statistics and survey-based reports have been computed by standard algorithms. Now, with Google’s “location-casting,” companies can use artificial intelligence and machine learning to sift through huge amounts of anonymized data and search queries to suggest a set of locations, that simultaneously takes into consideration factors like consumer demand, effective costs, profits, and future sites.
India’s Ministry of Civil Aviation was one of the first organizations to use location-casting to address the country’s complex network of airports. Its goal was to understand not just where passenger demand was the greatest, but also which combination of airport sites would meet that demand most efficiently and with the greatest ROI.
Find out the entire story. Download the case study now!
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