Insurer Uses Google Cloud AI to Battle Slow Growth: It Improves Sales by 5% in 8 Weeks
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For a business to succeed in the long term, it needs to learn not just to adapt to inevitable change, but to harness it. South Africa-based PPS has been an insurance company since 1941 and today is the biggest mutual insurance provider in the country.
As a mutual company, PPS is owned by more than 200,000 members, making them shareholders. In recent years, PPS and other companies like it have been affected by a number of external factors.
“For one thing, technology platforms have brought in a new gig economy that has all kinds of implications for insurance,” says Avsharn Bachoo, CTO at PPS. “What we’ve been seeing is basically a disruption of the South African insurance industry. We chose to see that as an opportunity.”
“Our servers were at the end of their life cycle and we had to decide whether to refresh them or switch completely. To embrace the world of AI and machine learning effectively, we knew we needed a cloud-based infrastructure. We’ve found the answer in Google Cloud Platform.”
—Avsharn Bachoo, CTO, PPS
In early 2018, faced with an uncertain economic environment that was squeezing growth and profitability, PPS decided to transform itself from a traditional broker-based business into a digital insurance provider. A key pillar of this new strategy was to overhaul the company’s technology infrastructure. To turn the strategy into reality, Avsharn and his team chose Google Cloud Platform (GCP).
“Our servers were at the end of their life cycle and we had to decide whether to refresh them or switch completely,” says Avsharn. “To embrace the world of AI and machine learning (ML) effectively, we knew we needed a cloud-based infrastructure. We’ve found the answer in Google Cloud Platform.”
Power, speed, flexibility with Google Cloud Platform
Previously, PPS maintained an on-premises IT infrastructure, which worked for its traditional business but was unsuited for its new way of working. In early 2018, the company started working on new products for its members but this required large amounts of compute power that proved prohibitively expensive with on-premises servers. Even existing products were starting to require more than the infrastructure could deliver. Aging equipment meant that it’s testing and quality assurance environments bore little resemblance to the actual production environment.
“We had no pre-production environments at all,” says Avsharn, resulting in more work for developers after products had been released. Meanwhile, the capital required to buy and configure more servers for new projects meant fewer resources available for innovation, and left the company less able to react to changes in the market. PPS knew it had to find a cloud-based alternative.
Shortly after devising a new digital strategy, PPS engineers attended a training session on cloud infrastructure given by leading South African Google Cloud Partner Siatik. Impressed with the presentation, PPS engaged Siatik to help run a proof of concept for a cloud-based infrastructure, running on GCP. With on-site engineers and constant communication, Siatik formed a very close working relationship with PPS. “The team at Siatik was exemplary,” recalls Avsharn. “They were well-organized, with cutting-edge technical acumen and very creative solutions to our problems. They were real game-changers.”
“We wanted the platform to retrain its models in response to new data and improve its recommendations with more information. Normally this would be a manual process but Google Cloud ML Engine lets the models do this automatically.”
—Kimoon Kim, Lead Solution Architect and Data Engineer, Siatik
The proof of concept was successful, with GCP outperforming the existing infrastructure in terms of how it handled compute demands, databases, and storage.
“It’s the speed of GCP that really impresses us,” says Avsharn. PPS saw that GCP wasn’t just an opportunity to migrate its existing infrastructure to the cloud. With Siatik’s help, it redesigned its monolithic core architecture to one based around microservices using Google Kubernetes Engine (GKE). For data processing and storage, Cloud Dataflow and Cloud Datastore proved invaluable, while Stackdriver helped the IT team stay on top of logging and monitoring the system.
“Google Cloud makes migrations very easy,” says Brett St. Clair, CEO at Siatik. “It takes care of all the hard work with configurations and replications, so when we switch the machines on, everything is ready and working.”
The ease with which PPS migrated to GCP means that it can now tackle strategic goals much more quickly than before. The most ambitious of these is an AI-powered product recommendation platform. Information is collected from customers who opt in at a defined point in their journey, this database is queried using BigQuery, and the information is fed into the platform. The AI model then calculates the most appropriate products for each member, according to their personal history.
“Most of the product recommendation engines out there are based on clustering, where you’re offered products based on your peer groups,” explains Avsharn. “For the first time, we can make recommendations to members based on their individual preferences and historical behavior. That’s really powerful for us.”
Siatik helped PPS use TensorFlow and Cloud Machine Learning Engine to build the AI platform. For the engineers, these easy-to-use tools helped speed up the process considerably, allowing them to host the models locally without any fuss. Previously, it took one to three months to manually build the model and match an offer to a customer. With the AI platform, a match takes just a few minutes. Cloud ML Engine, in particular, helped the platform adapt to new information on the fly and easily make adjustments to its hyperparameters, that is, preset variables which define the model-training process.
“We wanted the platform to retrain its models in response to new data and improve its recommendations with more information,” says Kimoon Kim, Lead Solution Architect and Data Engineer at Siatik. “Normally this would be a manual process but Google Cloud ML Engine lets the models do this automatically.”
“Google Cloud helped us cancel out a lot of the noise around machine learning and AI. We don’t have to build new complicated algorithms or hire huge teams of data scientists to benefit. We just bring our data and use the right tools to focus on what’s really important.”
—Avsharn Bachoo, CTO, PPS
Harnessing artificial intelligence for real-world results
PPS deployed its new AI recommendation platform in December, 2018. Just a couple of months later, its impact was clear. “In around eight weeks, we saw a 5 percent growth in sales,” says Avsharn. “It’s been a direct result of building our recommendation platform with Google Cloud. We can offer the right products to the right members.”
For developers and engineers at PPS, working with Google Cloud gives them access to high performance technology and automation options with GKE. As a result, the infrastructure runs 70 percent faster than before with fewer cores and less memory. Developers can also work in mature testing environments, and for the first time, are able to build pre-production environments, leading to better quality products. More strategically, moving to a serverless, cloud-based infrastructure has helped PPS take control of its budget, moving away from intermittent, large capital spends to more manageable, project-to-project flows of operational expenditure. The company expects to see savings of around 50 percent, or $695,000.
“We have a lot more flexibility with our resources thanks to Google Cloud,” says Avsharn. “When we have a new idea, we don’t have to outlay new capital such as servers before we can even start working on it. We just spin up instances when we want and spin them back down when we’re done.”
With the AI platform deployed and working well, PPS is already looking at ways to improve it, including real-time updates and further automation. Soon, the company will integrate the platform with more sales campaigns for more effective targeting to boost sales even further. Meanwhile, it’s also experimenting with machine learning to spot patterns in data at scale for fraud analytics and risk assessment.
For PPS, working with Google Cloud has helped it transform quickly and effectively from disrupted to disruptor. The company is now looking to gain the same transformative effects by implementing G Suite for increased productivity and collaboration.
“Google Cloud helped us cancel out a lot of the noise around machine learning and AI,” says Avsharn. “We don’t have to build new complicated algorithms or hire huge teams of data scientists to benefit. We just bring our data and use the right tools to focus on what’s really important.”
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Generating Value with AI
Hear how enterprises leveraging the Google Cloud–across industries–are using AI to navigate uncertain times, and how they are innovating with AI to generate value moving forward.
In this video, you’ll uncover how to start using innovations from Google Cloud AI in your business today, and how customers deploy AI to transform their organizations.
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Video: How AI is Helping Biologists Protect Wildlife
According to the World Wildlife Fund, vertebrate populations have shrunk an average of 60 percent since the 1970s. And a recent UN global assessment found that we’re at risk of losing one million species to extinction, many of which may become extinct within the next decade.
To better protect wildlife, seven organizations, led by Conservation International, and Google have mapped more than 4.5 million animals in the wild using photos taken from motion-activated cameras known as camera traps. The photos are all part of Wildlife Insights, an AI-enabled, Google Cloud-based platform that streamlines conservation monitoring by speeding up camera trap photo analysis.
With photos and aggregated data available for the world to see, people can change the way protected areas are managed, empower local communities in conservation, and bring the best data closer to conservationists and decision-makers.
Camera traps help researchers assess the health of wildlife species, especially those that are reclusive and rare. Worldwide, biologists and land managers place motion-triggered cameras in forests and wilderness areas to monitor species, snapping millions of photos a year.
But what do you do when you have millions of wildlife selfies to sort through? On top of that, how do you quickly process photos where animals are difficult to find, like when an animal is in the dark or hiding behind a bush? And how do you quickly sort through up to 80 percent of photos that have no wildlife at all because the camera trap was triggered by the elements, like grass blowing in the wind?
Watch this video to find out.
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Driving Business Transformation in Healthcare Using Google Cloud and AI/ML
Before the COVID-19 pandemic, when you thought of healthcare and AI, a number of ideas sprang to mind. But the world, especially as it relates to healthcare has seen a completely different type of transformation as a result of COVID-19.
This video is about how Google Cloud is helping organizations respond to COVID-19 leveraging AI and ML and Google Cloud’s healthcare and life sciences products as well as some of the work that its partners are doing.
Joe Corkery, Director, Product Management – Google Cloud, and Thomas C. Tsai, MD, MPH – Department of Surgery at Brigham and Women’s Hospital, will run over the application of AI to COVID forecasting, how Google Cloud’s healthcare-specific product offerings are being used to address COVID-19 and highlight work being done by one a Google Cloud partner in that area and how it’s being used to combat COVID-19.
Hike: Processing Analytics Queries 20X Faster with Google Cloud Platform
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After a seamless migration to Google Cloud Platform with CloudCover and Google Cloud Professional Services, Hike has reduced its costs by 20% and processed analytics queries 20 times faster than with its previous cloud provider. The business is also using AI and machine learning to enhance the experience provided by a new sticker-based messaging app, Hike Sticker Chat.
India is a market of opportunity for businesses that provide messaging apps to consumers. With more than 1.3 billion people, the country is the second most populous in the world. However, global messaging app providers face a robust market challenge from Hike, a home-grown internet and technology startup. Launched in 2012, Hike provides innovative products such as Hike Messenger and more recently the AI- and machine-learning-enabled Hike Sticker Chat, a service that enables young people in the country to express themselves through digital stickers.
The business says it understands the people of India and communication like no one else, while its mission is to reduce individuals’ dependency on the keyboard. To do this, Hike is building one of the largest repositories of AI and machine-learning-enabled stickers for Hike Sticker Chat. This messaging platform is, according to Hike, the only product of its type that enables conversations through stickers covering more than 40 languages and local dialects.
Google Cloud Results
- Processes analytics queries 20X faster than previously
- Doubles compute throughput
- Uses Google Cloud Machine Learning Engine managed, distributed capabilities to train complex models on TensorFlow that provide delightful local sticker recommendations through Hike Sticker Chat
Founded by Kavin Bharti Mittal, the Delhi-based venture is backed by SoftBank, Tencent, Tiger Global, Foxconn, and Bharti. To date, Hike has raised $261 million in funding. In August 2016, Hike raised its Series D round of funding, led by Tencent and Foxconn, at a valuation of $1.4 billion. The business is one of the fastest Indian startups to achieve Unicorn status, doing so in less than four years.
Hike started operations on a multinational cloud service. However, as user numbers and usage grew, the business began exploring options to improve performance and stability, reduce costs, and cut administration loads. In particular, Hike wanted to reduce latency between cloud data centers.
Focus on product development
“We aimed to move away from a technology stack with single points of failure to a horizontally scaled, highly reliable, distributed systems and managed services environment that enabled us to focus on product development rather than operations,” says Aditya Gupta, Director, Engineering, Hike.
Hike then began exploring the opportunities presented by Google Cloud Platform. The business held a number of executive-level meetings with Google to understand the capabilities, roadmap, and track record of the cloud service. It then decided to proceed with a proof of concept with Google Cloud Premier Partner CloudCover.
The proof of concept revealed that when Cloud Load Balancing was operating, latency between the Google Cloud data center in Taiwan and Delhi, India, was less than the latency between the incumbent cloud provider’s data center and Delhi. Further, compute throughput was up to two times greater on Compute Engine than on the equivalent service, while Hike could complete more then 1 million connections on Compute Engine – up from 500,000 connections on the incumbent service.
Migrate to GCP
The success of the exercise prompted Hike to migrate its messaging app to Google Cloud Platform. “We chose Google Cloud Platform because of its very broad set of services and features,” explains Gupta. “In addition, Google’s innovation mindset and the richness of the partnership would allow us to be onboarded quickly to machine learning services such as Cloud Machine Learning Engine.”
The business called on Google Cloud Professional Services (Technical Account Management) to help ensure a seamless lift-and-shift migration over two months. Google Cloud Professional Services initially undertook a technical infrastructure kickoff to establish a foundation for architecture requirements such as identity and access management and security.
Google Cloud Professional Services team delivers smooth migration
Google Cloud Professional Services worked closely with Hike to map out and deliver the Google Cloud Platform architecture that would deliver the greatest value to the business. The Professional Services team also worked with Hike to resolve product and support queries quickly; provided project background for product and support teams; and organized project meetings and early adopter program access.
In addition, Professional Services team members worked on site at least once a week, coordinated external support during critical migration periods, and coordinated teams in five countries for a single, 17-hour migration marathon. Over 60 days, the business migrated 7,000 processor cores, running virtual machine instances used for messaging infrastructure and analytics, to Google Cloud Platform.
Throughout the exercise, Google Cloud Professional Services worked with CloudCover to educate the customers’ technology teams to achieve proficiency with Google Cloud Platform. The teams soon built up skills and knowledge of best practices and began applying them to the Google Cloud Platform environment.
The Hike Google Cloud Platform architecture comprises virtual machine instances running in Compute Engine; Cloud Storage for unified object storage; networking; a BigQuery analytics data warehouse; Cloud Dataflow to transform and enrich data; Cloud Load Balancing to distribute workloads to maximize efficiency; and Cloud Dataproc to run Hadoop clusters.
Hike is also stepping up its AI & machine learning capabilities. It uses Google Cloud Machine Learning Engine managed, distributed computing capabilities to train complex models on TensorFlow. This powers key use cases such as delightful local sticker recommendations on Hike Sticker Chat. Hike is also investing heavily on AI and machine learning research.
Hike has achieved a range of benefits from its Google Cloud Platform deployment. As well as reduced latency, improved compute throughput, and increased connection handling, Google Cloud Platform managed services have enabled the business to reduce the time and effort required to administer core infrastructure, with the saved resources allocated to improving its messaging product.
“Managed services are beginning to reduce our operational overheads,” says Gupta. “For example, managed instance groups and Cloud Load Balancing are reducing our instance count and costs, thereby reducing involvement from DevOps and developer teams.”
Google Cloud Platform 20% cheaper
Gupta and his team have calculated that running for three years on Google Cloud Platform will cost, including the cost of migration, 20 percent less than on its previous platform. BigQuery is processing queries 20 times faster than a similar service offered by the previous provider, while storing 125TB of data and streaming 1.5TB of data daily. Furthermore, Hike’s analytics pipeline costs 80 percent less than in its previous environment.
“Google Cloud Platform has played an important role in enabling us to continue to innovate and realize our mission of reducing dependency on the keyboard,” says Gupta.
4 Methods How AI/ML Boosts Innovation and Reduces Costs
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“Cloud Wisdom Weekly: for tech companies and startups” is a new blog series we’re running this fall to answer common questions our tech and startup customers ask us about how to build apps faster, smarter, and cheaper. In this installment, we explore how to leverage artificial intelligence (AI) and machine learning (ML) for faster innovation and efficient operational growth.
Whether they’re trying to extract insights from data, create faster and more efficient workflows via intelligent automation, or build innovative customer experiences, leaders at today’s tech companies and startups know that proficiency in AI and ML is more important than ever.
AI and ML technologies are often expensive and time-consuming to develop, and the demand for AI and ML experts still largely outpaces the existing talent pool. These factors put pressure on tech companies and startups to allocate resources carefully when considering bringing AI/ML into their business strategy. In this article, we’ll explore four tips to help tech companies and startups accelerate innovation and reduce costs with AI and ML.
4 tips to accelerate innovation and reduces costs with AI and ML
Many of today’s most innovative companies are creating services or products that couldn’t exist without AI—but that doesn’t mean they’re building their AI and ML infrastructure and pipelines from scratch. Even for startups whose businesses don’t directly revolve around AI, injecting AI into operational processes can help manage costs as the company grows. By relying on a cloud provider for AI services, organizations can unlock opportunities to energize development, automate processes, and reduce costs.
1. Leverage pre-trained ML APIs to jumpstart product development
Tech companies and startups want their technical talent focused on proprietary projects that will make a difference to the business. This often involves the development of new applications for an AI technology, but not necessarily the development of the AI technology itself. In such scenarios, pre-trained APIs help organizations quickly and cost-effectively establish a foundation on which higher-value, more differentiated work can be layered.
For example, many companies building conversational AI into their products and services leverage Google Cloud APIs such as Speech-to-Text and Natural Language. With these APIs, developers can easily integrate capabilities like transcription, sentiment analysis, content classification, profanity filtering, speaker diarization, and more. These powerful technologies help organizations focus on creating products rather than having to build the base technologies.
See this article for examples of why tech companies and startups have chosen Google Cloud’s Speech APIs for use cases that range from deriving customer insights to giving robots empathetic personalities. For an even deeper dive, see
- our AI product page to explore other APIs, including Translation, Vision, and more;
- and the Google Cloud Skills Boost for ML APIs.
2. Use managed services to scale ML development and accelerate deployment of models to production
Pre-trained models are extremely useful, but in many cases, tech companies and startups need to create custom models to either derive insights from their own data or to apply new use cases to public data. Regardless of whether they’re building data-driven products or generating forecasting models from customer data, companies need ways to accelerate the building and deployment of models into their production environments.
A data scientist typically starts a new ML project in a notebook, experimenting with data stored on the local machine. Moving these efforts into a production environment requires additional tooling and resources, including more complicated infrastructure management. This is one reason many organizations struggle to bring models into production and burn through time and resources without moving the revenue needle.
Managed cloud platforms can help organizations transition from projects to automated experimentation at scale or the routine deployment and retraining of production models. Strong platforms offer flexible frameworks, fewer lines of code required for model training, unified environments across tools and datasets, and user-friendly infrastructure management and deployment pipelines.
At Google Cloud, we’ve seen customers with these needs embrace Vertex AI, our platform for accelerating ML development, in increasing numbers since it launched last year. Accelerating time to production by up to 80% compared to competing approaches, Vertex AI provides advanced end-to-end ML Ops capabilities so that data scientists, ML engineers, and developers can contribute to ML acceleration. It includes low-code features, like AutoML, that make it possible to train high performing models without ML expertise.
Over the first half of 2022, our performance tests found that the number of customers utilizing AI Workbench increased by 25x. It’s exciting to see the impact and value customers are gaining with Vertex AI Workbench, including seeing it help companies speed up large model training jobs by 10x and helping data science teams improve modeling precision from the 70-80% range to 98%.
If you are new to Vertex AI, check out this video series to learn how to take models from prototype to production. For deeper dives, see
- this article about Vertex AI’s role in an ambitious project to measure climate change with AI;
- BigQuery has built-in Machine Learning (ML) and Analytics that you can use to create no-code predictions using just SQL queries.
- this blog about how Vertex AI and BigQuery work together to make data analysis easier and more powerful;
- and this blog about Example-based explanations, one of our most recent updates to make model iteration more intuitive and efficient.
3. Harness the cloud to match hardware to use cases while minimizing costs and management overhead
ML infrastructure is generally expensive to build, and depending on the use case, specific hardware requirements and software integrations can make projects costly and complicated at scale. To solve for this, many tech companies and startups look to cloud services for compute and storage needs, attracted by the ability to pay only for resources they use while scaling up and down according to changing business needs.
At Google Cloud, customers share that they need the ability to optimize around a variety of infrastructure approaches for diverse ML workloads. Some use Central Processing Units (CPUs) for flexible prototyping. Others leverage our support for NVIDIA Graphics Processing Units (GPUs) for image-oriented projects and larger models, especially those with custom TensorFlow operations that must run partially on CPUs. Some choose to run on the same custom ML processors that power Google applications—Tensor Processing Units (TPUs). And many use different combinations of all of the preceding.
Beyond matching use cases to the right hardware and benefiting from the scale and operational simplicity of a managed service, tech companies and startups should explore configuration features that help further control costs. For example, Google Cloud features like time-sharing and multi-instance capabilities for GPUs — as well as features like Vertex AI Training Reduction Server — are built to optimize GPU costs and usage.
Vertex AI Workbench also integrates with the NVIDIA NGC catalog for deploying frameworks, software development kits and Jupyter Notebooks with a single click—another feature that, like Reduction Server, speaks to the ways organizations can make AI more efficient and less costly via managed services.
4. Implement AI for operations
Besides using pre-trained APIs and ML model development to develop and deliver products, startup and tech companies can improve operational efficiency, especially as they scale, by leveraging AI solutions built for specific business and operational needs, like contract processing or customer service.
Google Cloud’s DocumentAI products, for instance, apply ML to text for use cases ranging from contract lifecycle management to mortgage processing. For businesses whose customer support needs are growing, there’s Contact Center AI, which helps organizations build intelligent virtual agents, facilitate handoffs as appropriate between virtual agents and human agents, and generate insights from call center interactions. By leveraging AI to help manage operational processes, startups and tech companies can allocate more resources to innovation and growth.
Next steps toward an intelligent future
The tips in this article can help any tech company or startup find ways to save money and boost efficiency with AI and ML. You can learn more about these topics by registering for Google Cloud Next, kicking off October 11, where you’ll hear Google Cloud’s latest AI news, discussions, and perspectives—in the meantime, you can also dive into our Vertex AI quickstarts and BigQuery ML tutorials. And for the latest on our work with tech companies and startups, be sure to visit our Startups page.
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