Over the last two years, we’ve seen a significant uptick in the number of people using messaging to connect with businesses. Whether it was checking hours of operation, verifying what was in stock, or scheduling a pick-up, the pandemic caused a significant shift in consumer behavior.

• 45% of users are spending more time on messaging services because of the pandemic 
• 85% of consumers would like to message brands directly

With the rise in demand for messaging, consumers expect communication with businesses to be  speedy, simple, and convenient. For businesses, keeping up with customer inquiries can be a labor-intensive process, and offering 24/7 support outside of store hours can be costly.  

To help businesses seamlessly deliver helpful, timely, and engaging conversations with customers when and where they need help, we introduced AI-powered Business Messages.

https://youtube.com/watch?v=fcgP3RHjBLY%3Fenablejsapi%3D1%26

What is AI-powered Business Messages?

With AI-powered Business Messages, you can connect with your customers in their moment of need, in the places they’re looking for answers—such as Google Search, Google Maps, or any brand-owned channel. For instance, check out how Walmart customers in the US are able to receive real-time information on product availability, straight from a search results page.

People turn to Google when they are searching for answers to their questions, looking to buy something, or trying to accomplish a particular task with one of our many tools. In fact, 68% of all online experiences begin with a search engine.

At Google, we know how important it is for interactions with a brand to be personalized, helpful, and simple. With AI-powered Business Messages, customers are able to chat with virtual agents that understand, interact, and respond in natural ways.

We are also combining smart automation with the ability for customers to chat with live agents when it’s really needed. This approach saves your customers precious time, while also saving you money. And with Business Messages automatically handling many customer inquiries in the background, businesses have the option to distribute their human customer service agents to address other needs. 

Getting started with conversational AI is easy with Bot-in-a-Box

We know it can be difficult to get started with AI. That’s why we are utilizing existing Google AI tools like Dialogflow—part of Google Cloud Contact Center AI—to create the capability within Google’s Business Messages called Bot-in-a-Box, which makes getting started with Conversational AI easy. Bot-in-a-Box allows for fast and effective adoption of automation for businesses of all sizes. 

Enabling Business Messages with Bot-in-a-Box can be as simple as leveraging an existing customer FAQ document you already have, whether it’s from a web page or an internal document. And since the conversational AI is powered by Business Messages and Dialogflow working together, your chat bot is able to understand and respond to customer questions automatically without the need to write code. 

Bot-in-a-Box also supports other critical journeys like “Custom Intents.” That means that your bot is able to understand the different ways customers express a similar question and respond accurately by using machine learning capabilities.

Finding success 

In April 2021, Wake County courthouses in North Carolina partnered with Tango Technology to implement Business Messages when it became apparent that being able to provide the public and attorneys with around-the-clock access to information would significantly reduce the pressure on courthouse staff. Using Bot-in-a-Box, Tango Technology was able to customize a solution for Wake County Courthouse, Justice Center, and Clerk of Superior Court in just four days.

“With the combination of Google’s Business Messages, GCP, and Dialogflow, we were able to spin up an AI-driven bot for the courts in days. And the technology stack allows us to continually improve by adding functionality in an agile process.”— Mike Lotz, Co-Founder, Tango Technology

With Business Messages, North Carolina courthouses saw a 37% decrease in the call volume handled by courthouse staff.  With 398,298 fewer phone calls during the first year of operation, the AI-based messages helped Wake County Courthouse work more efficiently and productively.

We’ve seen many brands benefiting from AI-powered Business Messages. For instance, Levi’s saw a 30% increase in off-hours shoppers and surpassed 85% customer satisfaction scores after implementing Business Messages. They also drove 30x more store-related questions than Levi’s website chat. 

Bring Google’s conversational AI to your storefront with Business Messages

Google’s Business Messages makes it easier for businesses of all sizes to engage their existing or potential customers in a virtual conversation, when and where they need it. 

To learn more, watch our Cloud Next session here or visit us at g.co/businessmessages. We have specialized services to help you get started  and can share the wisdom of our channel partners and dedicated experts who specialize in unleashing the potential of conversational AI.

For a look ahead at the trends that will animate the retail industry this year, let’s take a look back at the 2022 National Retail Federation (NRF) “Big Show” in NYC.

Attendees at January’s event were treated to tangible examples of how retail challenges are being solved today, including new solutions to help them parse customer expectations and buying patterns, adapt stores into omni-channel experience hubs, and improve data visibility and actionability.

NRF 2022 also took the “omni-channel everything” theme of last year’s show to the logical next level: Enabling the best hybrid experiences. The message came through loud and clear of the importance of integration and interoperability in this new hybrid world – making everything work well together.

The need for modern digital infrastructure to enable this blending of physical and digital retail smoothly is paramount. To that end, technology vendors demonstrated how digital transformation initiatives, such as contactless and real time IoT and mobile applications, need to be built on cloud, edge, and secure connectivity to allow retailers to achieve the modern seamless hybrid retail that today’s consumer wants.

Other prominent themes and technologies highlighted at NRF included: extending engagement in the metaverse, sustainability, physical and digital security, and the agility and adaptability imperative.

The Metaverse and Hybrid (Omni-channel) Experiences

Today, the metaverse is an extension of our lives, enhanced by technology, which exists as a series of virtual worlds. In the future, the metaverse will be an interconnected, endless world where digital and physical lives fully converge. Imagine waiting for an appointment at a real booth on the NRF show floor while your avatar roams a fully fleshed-out digital NRF, meeting other virtual attendees, stopping for coffee at the digital Starbucks, and paying for a coffee that an in-the-flesh Starbucks employee brings to them. Digital and physical selves merge seamlessly in the metaverse, as the worlds draw closer together.

In the metaverse, brands have a digital presence, too. Nike filed seven trademarks late last year, including those for “Nike,” “Just Do It,” and its swoosh logo, and posted openings for virtual designer roles, indicating its intent to make and sell virtual branded sneakers and apparel. It subsequently purchased RTFKT Studios, a company that already makes and sells NFTs and digital sneakers. (In one collaboration with teenage artist FEWOCiOUS, the company sold 600 pair/NFTs of sneakers in just six minutes to the tune of more than $3.1 million.)

The metaverse also opens possibilities for gathering data about consumers and product demand. Imagine a sneaker drop in the virtual world. Certain styles of new kicks sell like gangbusters, giving the brand insight into what might sell IRL, intelligence that leads to trend-right production and less inventory headed for markdown or landfills. The metaverse can be a vehicle for more sustainable operations.

The metaverse further bridges the narrowing gap between digital worlds and physical worlds. Most consumers aren’t outfitting an avatar, but they are moving between online and offline and expect retailers to accommodate those hybrid omni-channel journeys seamlessly. Those demands have accelerated around last-mile delivery and experiences such as buying online and picking up in store (BOPIS) or at curbside, shopping in store and returning merchandise online, adding items to a BOPIS purchase when at the store, or communicating a substitution to the third-party grocery delivery service

Hybrid experiences open opportunities to please the consumer in new ways, but they also add expense and complexity. The need to meet this demand while enabling profitability was a major theme behind many of the technologies discussed at NRF. These included artificial intelligence (AI) for recommending the right product, return logistics software for defining and guiding product-specific reverse logistics workflows, order orchestration and fulfillment applications for omni-channel shopping, and last-mile delivery visibility for optimizing customer experience, to name a few. Also on display were task management applications help to improve and optimize in-store employee engagement, as well as touch-free applications to allow for faster payments and customer self-service checkout. RFID continues to improve inventory accuracy and inventory locating on the shelf, throughout the store, and the supply chain.

Sustainability

NRF 2022 saw a strong focus on sustainability. An NRF/IBV study released at the show highlighted the significant embrace of sustainable shopping by consumers. According to the survey, 62% of shoppers are “willing to change their purchasing habits to reduce environmental impacts.” About half indicated a willingness to pay a premium – on average a 70% premium – for sustainable products and brands.

Retailers are working to improve sustainability and reduce carbon footprint across operations by using sustainable sourcing through the supply chain, the store, and even returns. Tech vendors unveiled a variety of solutions enabled by cloud/edge, AI, computer vision, and IoT/RFID to allow retailers to effectively measure and record their environmental efforts, with the goal of reducing their impact.

Several cloud and digital infrastructure providers showcased sustainability clouds and other technology aimed at asset management with the goal of reducing energy consumption, water usage, waste. Examples included using IoT sensors to reduce water usage, optimizing re-use of store assets, and dashboards that allow retailers to accurately monitor and measure carbon output. However, such sustainability solutions can be most successful when running on the next-generation digital infrastructure that helps retailers better compete and differentiate in today’s omni-channel world.

Physical and Digital Security

According to a 2021 NRF survey, 57% of U.S. retailers reported the pandemic led to an increase in organized retail crime, while 50% reported an increase in shoplifting. When IDC’s Future Enterprise Resiliency & Spending Survey, Wave 10 (November 2021) asked retailers which digital infrastructure investments would provide the greatest strategic advantage in 2022, their #1 response was “cybersecurity and recovery investments.”

A wide range of technology vendors acknowledged retailer concerns with regards to security, fraud, and loss prevention:

• Networking, connectivity, and edge vendors highlighted multilayer security solutions that promise to protect data from a range of IoT applications that utilize customer and associate data. Many offer security consulting services to address varied threats including ransomware, retail crime, and loss prevention.
• Security and e-commerce security vendors showcased solutions to prevent fraud and abuse in e-commerce applications as well as omni-channel applications such as BOPIS and curbside pickup, using AI-based analysis for identifying “bad”/risky customers and mitigating risk.
• Cloud vendors highlighted how retail clouds provide consistent, reliable identity management and data security.
• POS/payments/store technology vendors emphasized their ability to handle payments securely from any platform with multifactor tokenization, improved identity techniques such as biometrics and voice authentication, as well as AI-enabled and computer vision solutions for loss prevention at checkout and at the door.

The Agility and Adaptability Imperative

On display at the show were multiple flavors of the digital infrastructure technology that retailers need to achieve agile, personalized, data-driven, integrated seamless operations across the many channels of today’s retail landscape. The emphasis was apt. More than half of retailers plan to boost investment in business agility and operational agility over the next 12 months, according to IDC’s Future Enterprise Resiliency & Spending Survey, Wave 10 (November 2021).

Technology vendors highlighted their connectivity investments to enable business and operational agility and their technology investments for better ease of integration, scalability, and the ability to more easily swap out or mix and match applications with integrated platforms, open systems, hybrid cloud, and retail industry clouds.

Vendors also showed off infrastructure to better harness data while enabling its visibility, maximizing its value, and providing the data-driven personalization essential for competitive advantage and differentiation. Highlights included fast, secure connectivity, 5G and Wifi-6, and edge- and cloud-enabled data and AI platforms to generate real-time insights – all designed to enable today’s omni-channel retail.

Advice for the technology buyer

Retailers should consider these key themes from NRF 2022 when making technology investment decisions for 2022 and beyond. To avoid lagging behind those retailers already moving toward thriving into the future, take action to:

• Enable the seamless, contactless omni-channel approach that today’s consumers want and expect.
• Replace legacy infrastructure that was not built to handle the modern retail environment that requires the agility and adaptability to seamlessly connect rapidly increasing volumes of data securely and more quickly than ever.

Whether sustainability, adaptability, the metaverse, or security are top concerns, addressing business needs holistically and strategically should be job #1.

Continue the conversation by downloading our Transforming retail and CPG markets whitepaper today.

Meeting the rapidly growing demands of our customers’ high performance computing and data-intensive workloads requires deep innovation — at Google Cloud, we know we can’t rely on ever-faster CPUs alone, like Moore’s Law has enabled in the past. Customers can either optimize their workloads for a given platform, or we can offer them a platform that is optimized for their specific needs. At Google Cloud, we choose the latter.

Today, we have an exciting new release resulting from these efforts: the new C3 machine series powered by the 4th Gen Intel Xeon Scalable processor and Google’s custom Intel Infrastructure Processing Unit (IPU). Along with the recently announced Hyperdisk block storage which offers 80% higher IOPS per vCPU for high-end database management system (DBMS) workloads when compared to other hyperscalers. C3 machine instances can deliver strong performance gains to enable high performance computing and data-intensive workloads. Customers such as Snap, for example, have seen approximately a 20% increase in performance for a key workload over the previous generation C2.

The C3 machine series is just the latest example of this architectural approach. For over two decades, Google has purpose-built and designed some of the world’s most efficient and scalable computing systems to meet the needs of our customers. We built the Tensor Processing Unit (TPU) to power real-time voice search, photo object recognition, and interactive language translation; unveiled Titan, a secure, low-power microcontroller to help ensure that every machine boots from a trusted state; and launched Video Coding Units (VCUs) to enable video distribution that addresses a range of formats and client requirements. We engineer golden paths from silicon to the console, using a combination of purpose-built infrastructure, prescriptive architectures, and an open ecosystem to deliver what we term workload-optimized infrastructure.

Getting to know the C3 machine series

The Compute Engine C3 machine series, now available in Private Preview, is the first VM in the public cloud with the 4th Gen Intel Xeon Scalable processor and with Google’s custom Intel IPU. C3 machine instances use offload hardware for more predictable and efficient compute, high-performance storage, and a programmable packet processing capability for low latency and accelerated, secure networking.

“We are pleased to have co-designed the first ASIC Infrastructure Processing Unit with Google Cloud, which has now launched in the new C3 machine series. A first of its kind in any public cloud, C3 VMs will run workloads on 4th Gen Intel Xeon Scalable processors while they free up programmable packet processing to the IPUs securely at line rates of 200Gb/s. This Intel and Google collaboration enables customers through infrastructure that is more secure, flexible, and performant.” – Nick McKeown, Senior Vice President, Intel Fellow and General Manager of Network and Edge Group

The System on a Chip hardware architecture introduced in C3 VMs can enable better security, isolation, and performance. In the future, this purpose-built architecture will also allow us to offer a richer product portfolio, such as support for native bare-metal instances.

Hyperdisk block storage and 200 Gbps networking

Block storage and VMs go hand in hand. Last month, we announced the Preview release of Hyperdisk, our next-generation block storage. The new architecture decouples compute instance sizing from storage performance to deliver 80% higher IOPS per vCPU than other leading hyperscale cloud provider. And compared with the previous generation C2, C3 VMs with Hyperdisk deliver 4x higher throughput and 10x higher IOPS. Now, you don’t have to choose expensive, larger compute instances just to get the storage performance you need for data workloads such as Hadoop and Microsoft SQL Server.

To enable high performance computing workloads, C3 VMs also feature 200 Gbps low-latency networking powered by our custom IPU, as well as line-rate encryption using the open source PSP protocol.

What our customers and partners are saying

“We were pleased to observe a 20% increase in performance over the current generation C2 VMs from Google Cloud in testing with one of our key workloads. These continued performance improvements enable better end user experience and application cost efficiency.” – Aaron Sheldon, Sr. Software Engineer, Snap Inc.

“Based on the initial performance data, running weather research and forecasting (WRF) on C3 clusters can deliver as much as 10x quicker time to results for about the same computational cost. This will significantly accelerate R&D for our customers in weather, environment, and engineering domains.” — Michael Wilde, CEO, Parallel Works Inc.

“In early testing with our flagship products, including Ansys Fluent, Mechanical and LS-DYNA, on the new Google Cloud C3 VM, we’re seeing up to 3x performance gains over C2 VMs due to higher memory bandwidth and lower network latency.” – Shane Emswiler, Senior Vice President of Products, Ansys

Where we are headed

With the exponential rise in the complexity of cloud infrastructure, we as an industry must turn to automation to manage these platforms efficiently at scale. Along with Infrastructure as Code, custom chips like the Titan, the TPU and the IPU, pave the way for a not-so-distant future where we’ll automate over half of all infrastructure decisions, configuring systems dynamically in response to usage patterns. At Google Cloud, we are committed to continuing our long history of hardware innovation with a focus on workload optimization and automation.

To learn more about C3 VMs and Hyperdisk, check out our session at NEXT ‘22, How Google Cloud optimizes infrastructure for your workloads. To request access to the C3 VMs or Hyperdisk, please reach out to your sales representative or account manager.