Documents are indispensable parts of our professional and personal lives. They give us crucial insights that help us become more efficient, that organize and optimize information, and that even help us to stay competitive. But as documents become increasingly complex, and as the variety of document types continues to expand, it has become increasingly challenging for people and businesses to sift through the ocean of bits and bytes in order to extract actionable insights.

This is where Google Cloud’s Document AI comes in. It is a unified, AI-powered suite for understanding and organizing documents. Document AI consists of Document AI Workbench (state-of-the-art custom ML platform), Document AI Warehouse (managed service with document storage and analytics capabilities), and a rich set of pre-trained document processors. Underpinning these services is the ability to extract text accurately from various types of documents with a world-class Document Optical Character Recognition (OCR) engine.

Google Cloud’s Document AI OCR takes an unstructured document as input and extracts text and layout (e.g., paragraphs, lines, etc.) from the document. Covering over 200 languages, Document AI OCR is powered by state-of-the-art machine learning models developed by Google Cloud and Google Research teams.

Today, we are pleased to announce three new OCR features in Public Preview that can further enhance your document processing workflows.

1. Assess page-level quality of documents with Intelligent Document Quality (IDQ)

With Document AI OCR, Google Cloud customers and partners can programmatically extract key document characteristics – word frequency distributions, relative positioning of line items, dominant language of the input document, etc. – as critical inputs to their downstream business logic. Today, we are adding another important document assessment signal to this toolbox: Intelligent Document Quality (IDQ) scores.

IDQ provides page-level quality metrics in the following eight dimensions:

1. Blurriness
2. Level of optical noise
3. Darkness
4. Faintness
5. Presence of smaller-than-usual fonts
6. Document getting cut off
7. Text spans getting cut off
8. Glares due to lighting conditions

Being able to discern the optical quality of documents helps assess which documents must be processed differently based on their quality, making the overall document processing pipeline more efficient. For example, Gary Lewis, Managing Director of lending and deposit solutions at Jack Henry, noted, “Google’s Document AI technology, enriched with Intelligent Document Quality (IDQ) signals, will help businesses to automate the data capture of invoices and payments when sending to our factoring customers for purchasing. This creates internal efficiencies, reduces risk for the factor/lender, and gets financing into the hands of cash-constrained businesses quickly.”

Overall, document quality metrics pave the way for more intelligent routing of documents for downstream analytics. The reference workflow below uses document quality scores to split and classify documents before sending them to either the pre-built Form Parser (in the case of high document quality) or a Custom Document Extractor trained specifically on lower-quality datasets.

2. Process digital PDF documents with confidence with built-in digital PDF support

The PDF format is popular in various business applications such as procurement (invoices, purchase orders), lending (W-2 forms, paystubs), and contracts (leasing or mortgage agreements). PDF documents can be image-based (e.g., a scanned driver’s license) or digital, where you can hover over, highlight, and copy/paste embedded text in a PDF document the same way as you interact with a text file such as Google Doc or Microsoft Word.

We are happy to announce digital PDF support in Document AI OCR. The digital PDF feature extracts text and symbols exactly as they appear in the source documents, therefore making our OCR engine highly performant in complex visual scenarios such as rotated texts, extreme font sizes and/or styles, or partially hidden text.

Discussing the importance and prevalence of PDF documents in banking and finance (e.g., bank statements, mortgage agreements, etc.), Ritesh Biswas, Director, Google Cloud Practice at PwC, said, “The Document AI OCR solution from Google Cloud, especially its support for digital PDF input formats, has enabled PwC to bring digital transformation to the global financial services industry.”

3. “Freeze” model characteristics with OCR versioning

As a fully managed cloud-based service, Document AI OCR regularly upgrades the underlying AI/ML models to maintain its world-class accuracy across over 200 languages and scripts. These model upgrades, while providing new features and enhancements, may occasionally lead to changes in OCR behavior compared to an earlier version.

Today, we are launching OCR versioning, which enables users to pin to a historical OCR model behavior. The “frozen” model versions, in turn, give our customers and partners peace of mind, ensuring consistent OCR behavior. For industries with rigorous compliance requirements, this update also helps maintain the same model version, thus minimizing the need and effort to recertify stacks between releases. According to Jaga Kathirvel, Senior Principal Architect at Mr. Cooper, “Having consistent OCR behavior is mission-critical to our business workflows. We value Google Cloud’s OCR versioning capability that enables our products to pin to a specific OCR version for an extended period of time.”

With OCR versioning, you have the full flexibility to select the versioning option that best fits your business needs.

Getting Started on Document AI OCR

Learn more about the new OCR features and tutorials in the Document AI Documentation or try it directly in your browser (no coding required). For more details on what’s new with Document AI, don’t forget to check out our breakout session from Google Cloud Next 2022.

Data-savvy businesses increasingly rely on images and videos for critical functions, and yet are challenged by the sheer mass of information—more than 3.2 billion images and 720,000 hours of video are created daily. This explosion in visual data has paved the way for the growth of computer vision, a form of artificial intelligence (AI) that enables computers to “see” the world similarly to the way people do, but with unblinking consistency, and greater accuracy. 

The transformational impact and value of computer vision solutions are significant and has been a guiding objective for companies and AI developers. And yet, even as the applications for computer vision increase dramatically, architecting and implementing vision AI solutions remain highly complex. Visual data, such as images and video, are made up of thousands of pixels of information that represent millions of different patterns and meanings, which can make interpreting even a single image overwhelming from a computational perspective.

Many organizations struggle with deployments and fail to operationalize vision AI solutions due to development delays, machine learning and data science hiring challenges, inaccurate output, a lack of integration with existing infrastructure, difficulty of use, and high cost. Plainsight, with the power of Google Cloud resources, is addressing all these challenges and helping businesses by enabling the deployment of vision AI within enterprise private networks that can be managed easily and scaled economically.

Plainsight has announced availability of its vision AI platform on Google Cloud Marketplace. Businesses can now easily deploy end-to-end vision AI to private clouds to realize the full value of their video and other visual data for accurate, actionable insights across diverse use cases.

Delivering on the Promise of AI: Seeing What’s Hiding In Plain Sight

For organizations to integrate AI and machine learning into their businesses successfully, the technology must be powerful enough to solve real challenges, yet fast, easy, and accessible enough to ensure the innovation potential is realized. Plainsight on Google Cloud delivers the power of enterprise vision AI that’s quick and easy to use with Google Cloud resources that enable global scale, increased security, bolstered privacy, unified billing, and cost savings. 

To streamline vision AI workflows, Plainsight facilitates the entire pipeline, from visual data ingestion and annotation, through continuous model training, deployment, and monitoring for easier innovation and faster time-to-production. Our platform accelerates vision AI development in a manner that is complete, accurate, and accessible to non-technical business leaders. We believe that AI should be available and accessible to anyone and everyone—so that teams across entire organizations can reap the benefits. 

By integrating Plainsight into their private networks, companies worldwide can now leverage one intuitive platform for centralized control of streamlined vision AI model creation and training with optimized visual data handling for diverse enterprise solutions. These use cases include: social distancing monitoring, medical imaging, drug compound screening, defect detection in manufacturing processes, identifying gas leaks, or even livestock counting and crop health monitoring for agriculture, to name a few.https://www.youtube.com/embed/A7U_0UkjvEg?enablejsapi=1&

We enable customers so they can create successful solutions that enable them to clearly see their business from all angles and to take advantage of the knowledge visual data can reveal by simply and quickly operationalizing practical vision AI applications.

AI-Powered Dataset Creation, Automated Model Training & Easy Deployment Without A Single Line Of Code 

For vision AI applications, success is inextricably dependent on the quality and quantity of the datasets required to train the relevant models. To aid enterprises in this vital stage, the Plainsight platform provides built-in data annotation for the fast and easy creation of datasets. This includes AI-powered features that accelerate the speed and quality of labeling such as SmartPoly, for the automated polygon masking of objects, TrackForward, to predict and automatically label objects from frame to frame in video annotations, and AutoLabel for automated object recognition and labeling based on pre-trained machine learning models, to highlight a few.

In addition, to ensure the success of AI integration, we significantly reduce time-intensive processes with Plainsight vision AI’s automated machine learning with continuous model training and easy deployment capabilities. In just a few clicks, users can leverage optimizations for the most reliable model training without endless experimentation cycles. And, models are easily deployed at scale all within one, easy-to-manage model operationalization process for the business.

Growing With Google Cloud

Plainsight is a vision AI innovation leader, developing solutions that address unmet needs for challenger brands and Fortune 500s across vertical markets. As a team recognized for succeeding where others have failed, our expanding partnership with Google Cloud provides a powerful combination that helps customers see and activate the value of their visual data with a suite of services in a secure and private manner.

Our vision AI Platform simplifies building and operationalizing AI to solve business problems enterprises are facing every day—and the demand is increasing. To accelerate our journey to faster, more accessible AI for enterprises, we knew we needed strong support to grow Plainsight and scale our backend tools to match our vision. 

Google Cloud delivered everything, and more, in one program. The Startup Program by Google Cloud provided the technology and services for scale and the support we needed to maximize the value the Program provided us. The Startup Program has been a springboard for architecting Plainsight vision AI in the cloud, accelerating our goals and optimizing innovation, efficiency, and growth. The team also helped us optimize Google Ads campaigns, fueling adoption of Plainsight. 

After launching the SaaS version of Plainsight Data Annotation in November 2020, we grew our user base by nearly 110x in just three short months. Google Ads has also dramatically increased website traffic, growing new users by nearly 5.75X and page views by over 5X. The Google team helped us identify where Google Cloud offerings could be leveraged instead of developing in-house solutions and offered best practices that enabled us to deliver faster on our initiatives. 

Kubernetes was already the underlying component of our platform and leveraging Google Kubernetes Engine (GKE) as a managed service removed a layer of complexity. By combining GKE and Anthos, we were able to standardize our deployments, aligning to how our customers leverage Anthos for enterprise applications in their own organizations. In addition, as a fast-moving, customer-centric company we use Google Workspace to help us centralize and manage our day-to-day work internally. By leveraging multiple products across Google’s ecosystem, we take advantage of a holistic partnership that has helped our business tremendously as we scale. 

Leveraging Google’s Partners for Strategic Consultation

To facilitate this expansion of our partnership with Google and to maximize our use of Google Cloud services, we are working with DoiT International, a Google Managed Services Provider and 2020 Global Reseller Partner of the Year. DoiT provides us with ongoing technical consultation for cloud-native architecture, Google Cloud Marketplace integration, production-grade Kubernetes support, Google Cloud cost optimization, and technical support. The DoiT team has been invaluable in compiling best practices, tips, and strategies from their vast experience with various cloud customers to ease our Marketplace integration and is providing input for infrastructure strategy to support our continued rapid growth.

Plainsight Delivers Enterprise Vision AI Through The Google Cloud Platform Marketplace

Plainsight vision AI is now available to Google Cloud Customers on Google Cloud Marketplace enabling organizations across industries to deploy private Plainsight instances within their own environments. Marketplace customers will benefit from Google Cloud privacy, security, scalability and unified billing through their Google Cloud account. 

Combining the powerful benefits provided by Google Cloud resources with Plainsight’s vision AI Platform into private networks, enterprises worldwide can now leverage one intuitive platform for centralized control of streamlined vision AI model creation and training with optimized visual data handling for diverse enterprise solutions. 

Through our Google partnership, we’re able to leverage a powerful foundation that allows us to rapidly innovate, scale and accelerate delivery on our vision AI platform capabilities. By executing on our vision to make AI easier, faster and more accessible for all users across entire enterprises, we’re helping businesses see more and by seeing more, they’ll have the power to solve more. 

If you want to learn more about how Google Cloud can help your startup, visit our page here where you can apply for our Startup Program, and sign up for our monthly startup newsletter to get a peek at our community activities, digital events, special offers, and more.

The disruptions of 2020 elevated the importance of having the right data and insights to pivot quickly when necessary. Here’s a look at how businesses can use embedded intelligence to prepare for uncertainty and meet ever-changing customer expectations.

At work and in life, some unpredictability is always a part of the package. Ten years ago, your business might have experienced sudden product demand or a system outage that slowed down deliveries. Servers or data platforms might have run out of capacity earlier than expected.

In 2020, though, the concept of unpredictability in business reached new heights. These disruptions have elevated the importance of embedded intelligence—that is, having machine learning built into the tools people use every day, so that when a pivot is necessary, everyone has the data and insights they need at their fingertips. In fact, 2020 was so disruptive, with so many changes in customer behavior and so many ripple effects, a lot of historical data and forecasting assumptions may not be helpful in 2021. This only increases the onus on businesses to make the freshest data actionable for more of the workforce. 

A decade or so ago, the idea of embedded intelligence might have seemed like science fiction. You might remember hearing that analytics would be able to make predictions, and that technology would be able to take on the complex work of predicting retail demand or helping to create a responsive supply chain. But insufficient hardware, older architecture models, slow queries, and untrustworthy data often got in the way. 

Now, that concept has become reality as enterprise decision-making has moved from legacy tools to cloud-powered data intelligence services. Today, it’s possible to perform complex analytics tasks and obtain valuable, trusted outputs much faster than ever before. That speed and scale has allowed businesses to tackle entirely new projects and release new features and products very quickly. In addition, APIs have become a lot more intelligent, making it easy to connect siloed solutions. No matter the industry, businesses can access the technology to get to the bottom of what customers need.

Related: Top 5 trends for API-powered digital transformation in 2021

Meeting ever-changing customer expectations with embedded ML

Bringing embedded analytics to real-world uses continues to evolve, with a number of inspiring examples surfacing in the past year. As a result of the pandemic and shifting public health guidelines, many businesses didn’t know month by month if they’d be interacting with customers primarily through in-person or digital channels. And even if both channels were available, it wasn’t obvious how changing customer behaviors would net out.

At patient engagement platform Force Therapeutics, for example, daily activity on their virtual care platform went up by over 140% during the pandemic. With such a large influx of incoming data, it would have been difficult—if not impossible—for a team of humans to gather, organize, and draw insights from all of that information, especially in a timely enough manner to be of use to healthcare providers. 

To deliver the necessary care when and how it was needed, Force Therapeutics required a machine learning solution that could identify patient needs based on a wide range of data. Using an embedded analytics platform, they created an application that allowed them to monitor the progress of post-op patients, answer questions, or triage concerns remotely. The platform also enabled providers to check for spikes and anomalies, in order to identify patients who needed to come in due to a critical issue.

Amidst all of the disruption, it became clear that teamwork is essential, and that effective teamwork relies on having the right data-driven tools to get the job done.

Likewise, home delivery became a bigger part of consumers’ routines. This increased pressure on companies to adapt quickly to changes that might prevent packages from arriving on time, such as worsening weather conditions or upstream supply chain disruptions. Amidst all of the disruption, it became clear that teamwork is essential, and that effective teamwork relies on having the right data-driven tools to get the job done.

One example of this can be seen in Google Cloud customers who are using public data to accelerate their journey from data to actionable insights. Some retailers are utilizing the Google Cloud Public Datasets Program to leverage NOAA’s Global Surface Summary of the Day (GSOD) and Severe Weather Data Inventory datasets in order to better understand disruptive weather events, reroute their supply chains to prevent disruptions, and predict their in-store inventory needs to support communities as they recover from natural disasters. 

Implementing ML without the complexity

The idea of embedded ML has been hyped for years, but for many use cases, the status quo tools have not caught up to the enthusiasm. Many business intelligence tools rooted in older database architectures require intense engineering work to deliver insights, queries are often slow, and the output is not always consistent or accurate. Part of the challenge is that building ML pipelines is difficult. Data in a database or data warehouse typically needs to move to an intelligence platform so models can be trained, and the models then need to be deployed and integrated into business workflows.

But modern data warehouses such as BigQuery let users train models in the warehouse itself, without having to move the data—and once the models are created, they can be applied and integrated into business processes using simple SQL. When it comes to embedding ML into enterprise processes, these modern approaches significantly lower the barrier for entry. Plus, tools like Looker, Google Cloud’s platform for modern BI and data applications, were created specifically for modern data needs, with the assumption that data needs would constantly evolve and that iterations should be made quickly without eating up inordinate engineering resources.

Related: Google (Looker) recognized in the Gartner 2021 Magic Quadrant for Analytics and Business Intelligence Platforms.

For Commonwealth Care Alliance (CCA), Looker was originally implemented to alleviate their pain points around data bottlenecks and data chaos. But when the pandemic hit, the nonprofit, community-based healthcare organization pivoted to make use of Looker’s tools to better serve patients. CCA used BigQuery and Looker to combine numerous datasources, create a predictive model that assesses risk, and distribute that model to its clinicians. This has given response teams the insights to determine who is too high risk to come in for care so they can reach out with home care solutions.

This kind of agility is not a one-time antidote to a one-time disruption, but rather the norm to which organizations must aspire if they want to remain competitive and protect themselves against future disruptions.

This same functionality is also helping businesses like SoundCommerce. Retailers like Constellation Brands, Eddie Bauer, and FTD/ProFlowers use SoundCommerce’s out-of-the-box data platform, which is powered by BigQuery and Looker, to collect retail data from any source and build a model around the metrics and relationships that are most crucial to retail. This has saved brands hundreds of manual reporting hours each month, and reduced platform licensing costs by almost 75%. Just as importantly, during the uncertain times of 2020, brands that used SoundCommerce were able to align real-time and predictive business decisions across marketing and operations with critical retail KPIs like contribution margin and customer lifetime value (CLV). 

As 2020 showed us, we can never predict the future—but we can prepare for unpredictability by having the agility to always improve, and by positioning ourselves to make quick, intelligent pivots when the time comes. Last year was in many ways a rubicon: This kind of agility is not a one-time antidote to a one-time disruption, but rather the norm to which organizations must aspire if they want to remain competitive and protect themselves against future disruptions.

Looking for an ‘easy button’ to speed up your BI workloads running on BigQuery? Check out our latest announcement about BI Engine on the Google Cloud Blog.

Debanjan Saha

Debanjan Saha is GM of Data Analytics at Google Cloud, where he leads the strategy and execution of analytics services in GCP. Prior to joining Google, Debanjan was VP of Amazon Aurora and RDS at Amazon Web Services. Earlier in his career Debanjan held multiple executive and technical leadership positions at IBM and Tellium, an optical networking pioneer that he helped grow from an early stage start-up to a public company. 

Debanjan is a Fellow of the IEEE and a Distinguished Scientist of the ACM. He has co-authored a book, 50 patent applications, and numerous technical articles including award winning papers and Internet standards. He received MS and PhD degrees from the University of Maryland, and a B.Tech from IIT, all in Computer Science. In 2019, Business Insider named him as one of the top 10 technology executives transforming business. 

Today, ML-driven innovation is fundamentally transforming computing, enabling entirely new classes of internet services. For example, recent state-of-the-art lage models such as PaLM and Chinchilla herald a coming paradigm shift where ML services will augment human creativity. All indications are that we are still in the early stages of what will be the next qualitative step function in computing. Realizing this transformation will require democratized and affordable access through cloud computing where the best of compute, networking, storage, and ML can be brought to bear seamlessly on ever larger-scale problem domains.

Today’s release of MLPerf™ 2.0 results from the MLCommons® Association highlights the public availability of the most powerful and efficient ML infrastructure anywhere. Google’s TPU v4 ML supercomputers set performance records on five benchmarks, with an average speedup of 1.42x over the next fastest non-Google submission, and 1.5x vs our MLPerf 1.0 submission. Even more compelling — four of these record runs were conducted on the publicly available Google Cloud ML hub that we announced at Google I/O. ML Hub runs out of our Oklahoma data center, which uses over 90% carbon-free energy.

Let’s take a closer look at the results.

Performance at scale…and in the public cloud

Our 2.0 submissions1, all running on TensorFlow, demonstrated leading performance across all five benchmarks. We scaled two of our submissions to run on full TPU v4 Pods. Each Cloud TPU v4 Pod consists of 4096 chips connected together via an ultra-fast interconnect network with an industry-leading 6 terabits per second (Tbps) of bandwidth per host, enabling rapid training for the largest models.

Hardware aside, these benchmark results were made possible in no small part by our work to improve the TPU software stack. Scalability and performance optimizations in the TPU compiler and runtime, including faster embedding lookups and improved model weight distribution across the TPU pod, enabled much of these improvements, and are now widely available to TPU users. For example, we made a number of performance improvements to the virtualization stack to fully utilize the compute power of both CPU hosts and TPU chips to achieve peak performance on image and recommendation models. These optimizations reflect lessons from Google’s cutting-edge internal ML use cases across Search, YouTube, and more. We are excited to bring the benefits of this work to all Google Cloud users as well.

Translating MLPerf wins to customer wins

Cloud TPU’s industry-leading performance at scale also translates to cost savings for customers. Based on our analysis summarized in Figure 3, Cloud TPUs on Google Cloud provide ~35-50% savings vs A100 on Microsoft Azure (see Figure 3). We employed the following methodology to calculate this result:2

We compared the end-to-end times of the largest-scale MLPerf submissions, namely ResNet and BERT, from Google and NVIDIA. These submissions make use of a similar number of chips — upwards of 4000 TPU and GPU chips. Since performance does not scale linearly with chip count, we compared two submissions with roughly the same number of chips.

To simplify the 4216-chip A100 comparison for ResNet vs our 4096-chip TPU submission, we made an assumption in favor of GPUs that 4096 A100 chips would deliver the same performance as 4216 chips.

For pricing, we compared our publicly available Cloud TPU v4 on-demand prices ($3.22 per chip-hour) to Azure’s on-demand prices for A1003 ($4.1 per chip-hour). This once again favors the A100s since we assume zero virtualization overhead in moving from on-prem (NVIDIA’s results) to Azure Cloud.

The savings are especially meaningful given that real-world models such as GPT-3 and PaLM are much larger than the BERT and ResNet models used in the MLPerf benchmark: PaLM is a 540 billion parameter model, while the BERT model used in the MLPerf benchmark has only 340 million parameters — a 1000x difference in scale. Based on our experience, the benefits of TPUs will grow significantly with scale and make the case all the more compelling for training on Cloud TPU v4.

Have your cake and eat it too — a continued focus on sustainability

Performance at scale must take environmental concerns as a primary constraint and optimization target. The Cloud TPU v4 pods powering our MLPerf results run with 90% carbon-free energy and a Power Usage Efficiency of 1.10, meaning that less than 10% of the power delivered to the data center is lost through conversion, heat, or other sources of inefficiency. The TPU v4 chip delivers 3x the peak FLOPs per watt relative to the v3 generation. This combination of carbon-free energy and extraordinary power delivery and computation efficiency makes Cloud TPUs among the most efficient in the world.4

Making the switch to Cloud TPUs

There has never been a better time for customers to adopt Cloud TPUs. Significant performance and cost savings at scale as well as a deep-rooted focus on sustainability are why customers such as Cohere, LG AI Research, Innersight Labs, and Allen Institute have made the switch. If you are ready to begin using Cloud TPUs for your workloads, please fill out this form. We are excited to partner with ML practitioners around the world to further accelerate the incredible rate of ML breakthroughs and innovation with Google Cloud’s TPU offerings.

1. MLPerf™ v2.0 Training Closed. Retrieved from https://mlcommons.org/en/training-normal-20/ 29 June 2022, results 2.0-2010, 2.0-2012, 2.0-2098, 2.0-2099, 2.0-2103, 2.0-2106, 2.0-2107, 2.0-2120. The MLPerf name and logo are trademarks of MLCommons Association in the United States and other countries. All rights reserved. Unauthorized use is strictly prohibited. See www.mlcommons.org for more information.
2. MLPerf v1.0 and v2.0 Training Closed. Retrieved from https://mlcommons.org/en/training-normal-20/ 29 June 2022, results 1.0-1088, 1.0-1090, 1.0-1092, 2.0-2010, 2.0-2012, 2.0-2120.
3. ND96amsr A100 v4 Azure VMs, powered by eight 80 GB NVIDIA Ampere A100 GPUs (Azure’s flagship Deep Learning and Tightly Coupled HPC GPU offering with CentOS or Ubuntu Linux) is used for this benchmarking
4. Cost to train is not an official MLPerf metric and is not verified by MLCommons Association. Azure performance is a favorable estimate as described in the text, not an MLPerf result. Computations are based on results from MLPerf v2.0 Training Closed. Retrieved from https://mlcommons.org/en/training-normal-20/ 29 June 2022, results 2.0-2012, 2.0-2106, 2.0-2107.

For years, retailers have been told that they must embrace a litany of new technologies, trends, and imperatives like online shopping, mobile apps, omnichannel, and digital transformation. In search of growth and stability, retailers adopted many of these, only to realize that for every box they ticked, there was another one waiting.

And then the pandemic hit, along with rising social movements and increasingly harsh weather. Some retailers were more prepared to take on these disruptions than others, which crystallized a new universal truth across the industry: the ability to adapt on the fly became the most important trait to survive and thrive.

Today’s retail landscape has surfaced both existing and new challenges for specialty and department store retailers. Approximately 88% of purchases previously occurred within a store environment. Now, it’s closer to 59%, with the remainder done online or through other omni methods. 

With such constant change and upheaval, it can feel like the mantra now is ABP: always be pivoting. 

The big question isn’t just how to maintain constant momentum and agility—it’s how to do it without sapping your workforce, your inventory, or your profits in the process. The pivot is now a given. What matters is how you do it.

Adapting requires a flexible base of technology that allows retailers to shift and scale seamlessly with the needs of the moment. 

They need to be able to leverage real-time insights and enhance customer experiences rapidly, online and in the real world (not to mention the growing hybridization that’s AR and VR). They need to modernize their stores to power engaging consumer and associate experiences. They need to enhance operations for rapid scaling between full operations and digital-only offerings.

To help retailers achieve these goals and more, Google Cloud is honing a trio of essential innovations: demand forecasting that harnesses the power of data analytics and artificial intelligence; enhanced product discovery to improve conversion across channels; and the tools to help create the modern store experience.

In other words, here’s some of the biggest ways we’re ready to help you pivot.

Pivot point 1: Harnessing data and AI for demand forecasting with Vertex AI

One of the greatest challenges for retailers when building organizational flexibility is managing inventory and the supply chain. 

We are in the midst of one of the worst global supply chain crises, stemming from soaring demand and logistics issues brought on by the pandemic. This crisis has only heightened the challenge retailers face when assessing demand and product availability. Even in normal times, mismanagement of inventory can add up to a trillion-dollar problem, according to IHL Group (costing $634 billion in lost sales worldwide each year, while overstocks result in $472 billion in lost revenues due to markdowns). 

On the flipside, optimizing your supply chain can lead to greater profits. For instance, McKinsey predicts that a 10% to 20% improvement in retail supply chain forecasting accuracy is likely to produce a 5% reduction in inventory costs and a 2% to 3% increase in revenues.

Some of the challenges related to demand forecasting include:

• Low accuracy leads to excess inventory, missed sales, and pressure on fragile supply chains.
• Real drivers of product demand are not included, because large datasets are hard to model using traditional methods.
• Poor accuracy for new product launches and products that have sparse or intermittent demand.
• Complex models are hard to understand, leading to poor product allocation and low return on investment on promotions.
• Different departments use different methods, leading to miscommunication and costly reconciliation errors.

AI-based demand forecasting techniques can help. Vertex AI Forecast supports retailers in maintaining greater inventory flexibility by infusing machine learning into their existing systems. Machine learning and AI-based forecasting models like Vertex AI are able to digest large sets of disparate data, drive analytics and automatically adjust when provided with new information. 

With these machine learning models, retailers can not only incorporate historical sales data, but also use close to real-time data such as marketing campaigns, web actions like a customer clicking the “add to cart” button on a website, local weather forecasts, and much more. 

Pivot point 2: Enhanced product discovery through AI-powered search and recommendations

If customers can’t easily find what they are looking for, whether online or at the store, they will turn to someone else. That’s a simple statement, but one with profound impacts.

In research conducted by The Harris Poll and Google Cloud, we found that over a six month period, 95% of consumers received search results that were not relevant to what they were searching for on a retail website. And roughly 85% of consumers view a brand differently after an unsuccessful search, while 74% say they avoid websites where they’ve experienced search difficulties in the past.

Each year, retailers lose more than $300 billion dollars from search abandonment, or when a consumer searches for a product on a retailer’s website but does not find what they are looking for. Our product discovery solutions help you surface the right products, to the right customers, at the right time. These solutions include: 

• Vision Product Search, which is like bringing the augmented reality of Google Lens to a retailer’s own branded mobile app experience. Both shoppers and retail store associates can search for products using an image they’ve photographed or found online and receive a ranked list of similar items.
• Recommendations AI, which enables retailers to deliver highly personalized recommendations at scale across channels.
• Retail Search, which provides Google-quality search results on a retailer’s own website and mobile applications.

All three are powered by Google Cloud, leveraging Google’s advanced understanding of user context and intent, utilizing technology to deliver a seamless experience to every shopper. With these combined capabilities, retailers are able to reduce search abandonment and improve conversions across their digital properties. 

Pivot point 3: Building the modern store

Stores are no longer places for just browsing and buying. They must be flexible operation centers, ready to pivot to address changing circumstances. The modern store must be multiple things at once: a mini-fulfillment and return center, a recommendation engine, a shopping destination, a fun place to work, and more. 

Just as retail companies had to embrace omnichannel, stores are now becoming omnichannel centers on their own, mixing the digital and physical into a single location. Retailers can use physical stores as a vehicle to deliver superior customer experiences. This will demand heightened levels of collaboration and cooperation between stores, digital, and tech infrastructure teams, building on the agile ways they have worked together.

In many ways, it’s about allowing our physical spaces to function more like digital ones. Google Cloud can help by bringing the scalability, security, and reliability of the cloud to the store, allowing physical locations to upgrade infrastructure and modernize their internal and customer-facing applications. 

Think of it as when a new OS gets released for your phone. It’s the same small, hard box, but the experience can feel radically different. Now, extend that same idea to a digitally enabled store. With the right displays, interfaces, and tools at a given retail location, the team only needs to send an over-the-air update to create radically fresh experiences, ranging from sales displays to fulfillment or employee engagement.

Such an approach can enable streamlined experiences for both customers and store associates. For instance, when it comes to the modern store’s evolving role as a fulfillment or return center, cloud solutions can help drive efficiency in stores through automation of ordering, replenishment, and fulfillment of omnichannel order selection.  

Similar tools for personalized product discovery online can be applied to customers in the store, helping them to browse and explore, or even create a tailored shopping experience. 

The impact of store associates can be maximized by equipping them with technology to provide expertise that drives value-added customer service, as well as increasing productivity in stores by streamlining operations, thus lowering overhead cost. At the register, customers should be able to enjoy frictionless checkout while ensuring reliable, accurate, secure transactions.

Google Cloud can help retailers transform

The ability to adapt and pivot to meet today’s changing consumer needs requires that retailers rely on modern tools to obtain operational flexibility. We believe that every company can be a tech company. That every decision is data driven. That every store is physical and digital all at once. That every worker is a tech worker. 

Google Cloud works with retailers to help them solve their most challenging problems. We have the unique ability to handle massive amounts of unstructured data, in addition to advanced capabilities in AI and ML. Our products and solutions help retailers focus on what’s most important—from improving operations to capturing digital and omnichannel revenue.