How AI Has Helped Enterprises Adapt Quickly to Moments of Change - Build What's Next

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Explainer

How AI Has Helped Enterprises Adapt Quickly to Moments of Change

The pandemic has clearly caused a tremendous amount of rapid change for businesses across industries and regions.

In this session, Michael Baldwin, Head of Product – Financial Services, Google Cloud speaks about ways that artificial intelligence has helped enterprises adapt to those changes.

He will cover trends that Google Cloud experts are witnessing as they work with enterprises and the impact those trends have on key industries.

Some of these include:

  • Significant shifts in demand
  • Increased cost pressures
  • Supply chain uncertainty
  • Spikes in customer support cases
  • Virtual work for continuity of services
  • Accelerated digital transformation  

He then demonstrates, with specific examples, how AI can helpful in these moments of change.

Blog

Supercharging Security with Generative AI

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Google Cloud introduces its Security AI Workbench and Sec-PaLM, employing AI to advance threat response, transform cybersecurity, and empower all levels of security professionals. Read more...

At Google Cloud, we continue to invest in key technologies to progress towards our true north star on invisible security: making strong security pervasive and simple for everyone. Our investments are based on insights from our world-class threat intelligence teams and experience helping customers respond to the most sophisticated cyberattacks. Customers can tap into these capabilities to gain perspective and visibility on the most dangerous threat actors that no one else has. 

Recent advances in artificial intelligence (AI), particularly large language models (LLMs), accelerate our ability to help the people who are responsible for keeping their organizations safe. These new models not only give people a more natural and creative way to understand and manage security, they give people access to AI-powered expertise to go beyond what they could do alone. 

At the RSA Conference 2023, we are excited to announce Google Cloud Security AI Workbench, an industry-first extensible platform powered by a specialized, security LLM, Sec-PaLM. This new security model is fine-tuned for security use cases, incorporating our unsurpassed security intelligence such as Google’s visibility into the threat landscape and Mandiant’s frontline intelligence on vulnerabilities, malware, threat indicators, and behavioral threat actor profiles. 

Google Cloud Security AI Workbench powers new offerings that can now uniquely address three top security challenges: threat overload, toilsome tools, and the talent gap. It will also feature partner plug-in integrations to bring threat intelligence, workflow, and other critical security functionality to customers, with Accenture being the first partner to utilize Security AI Workbench. 

The platform will also let customers make their private data available to the platform at inference time; ensuring we honor all our data privacy commitments to customers. Because Security AI Workbench is built on Google Cloud’s Vertex AI infrastructure, customers control their data with enterprise-grade capabilities such as data isolation, data protection, sovereignty, and compliance support. 

Preventing threats from spreading beyond the first infection

We already provide best-in-class capabilities to help organizations immediately respond to threats. But what if we could not just identify and contain initial infections, but also help prevent them from happening anywhere else? With our AI advances, we can now combine world class threat intelligence with point-in-time incident analysis and novel AI-based detections and analytics to help prevent new infections. These advances are critical to help counter a potential surge in adversarial attacks that use machine learning and generative AI systems. That’s why we’re excited to introduce:  

  • VirusTotal Code Insight uses Sec-PaLM to help analyze and explain the behavior of potentially malicious scripts, and will be able to better detect which scripts are actually threats. 
  • Mandiant Breach Analytics for Chronicle leverages Google Cloud and Mandiant Threat Intelligence to automatically alert you to active breaches in your environment. It will use Sec-PaLM to help contextualize and respond instantly to these critical findings.

These new updates build on the existing AI in Google’s industry-leading solutions. For example, Chronicle Security Operations already uses frontline intelligence, integrated reasoning, and machine learning to identify initial infections, prioritize impact, and contain threats. Another example is reCAPTCHA Enterprise, which uses image noising capabilities to help protect your site from adversaries that leverage novel AI advances, greatly enhancing our defenses against bots. 

Adding intelligence to reduce toil

At Google Cloud, we help organizations modernize security wherever they are, in part by simplifying their security tools and controls whenever possible. Advances in generative AI can help reduce the number of tools organizations need to secure their vast attack surface areas and ultimately, empower systems to secure themselves. This will minimize the toil it takes to manage multiple environments, to generate security design and capabilities, and to generate security controls. Today, we’re announcing: 

  • Assured OSS will use LLMs to help us add even more open-source software (OSS) packages to our OSS vulnerability management solution, which offers the same curated and vulnerability-tested packages that we use at Google.
  • Mandiant Threat Intelligence AI, built on top of Mandiant’s massive threat graph, will leverage Sec-PaLM to quickly find, summarize, and act on threats relevant to your organization. 

These announcements build on existing capabilities that help customers centralize visibility and control, detect targets, and improve security across their platform. For example, Security Command Center (SCC) uses always-on machine learning to detect malicious scripts executing in the customer container environment and immediately alert the customer. In addition, Cloud Data Loss Prevention leverages machine learning to find and classify data, and with Confidential Computing you can collaborate on, train, and deploy sensitive and regulated AI models in the cloud, all while preserving confidentiality. 

Evolving how practitioners do security to close the talent gap 

At Google, we believe that to truly democratize security, we need to first acknowledge that AI will soon usher in a new era for security expertise that will profoundly impact how practitioners “do” security. Most people who are responsible for security — developers, system administrators, SRE, even junior analysts — are not security specialists by training. 

Imagine a world where novices and security experts are paired with AI expertise to free themselves from repetition and burnout, and accomplish tasks that seem impossible to us today. To help power this evolution, we’re embedding Sec-PaLM-based features that can make security more understandable while helping to improve effectiveness with exciting new capabilities in two of our solutions: 

  • Chronicle AI: Chronicle customers will be able to search billions of security events and interact conversationally with the results, ask follow-up questions, and quickly generate detections, all without learning a new syntax or schema.
  • Security Command Center AI: Security Command Center will translate complex attack graphs to human-readable explanations of attack exposure, including impacted assets and recommended mitigations. It will also provide AI-powered risk summaries for security, compliance, and privacy findings for Google Cloud.

These new releases bolster our existing efforts to tackle these issues through capabilities like IAM Recommender, which suggests permissions better suited to actual usage patterns. We will soon be augmenting this capability to cover organizational policies, further enabling the administrator to help improve the security posture of their organization. In addition, Mandiant Automated Defense applies machine learning to help reduce the repetitive Tier 1 alert triage problem and address alert fatigue. 

Offering availability 

VirusTotal Code Insight, available now in Preview, is our first example of putting Security AI Workbench to work for our customers. We will be rolling out other offerings to trusted testers in coming months, and they will be available in Preview more broadly this summer. Click here for the demo

Security AI Workbench, including Sec-PaLM and partner integrations, in addition to the product innovations described in our demo, are all building blocks for a larger effort to elevate security across the ecosystem. So far, that effort: 

  • Provides assistive functions to rapidly develop IT generalist talent to Tier 1 security operator status in a way that wasn’t previously feasible. Security Command Center now can summarize threat intelligence insights and findings for Google Cloud, and Chronicle can quickly generate YARA-L rules or other detections. 
  • Provides advanced functions such as iterative query and multivariate detection generation, conversational filtering and interaction with results, and smart case awareness to empower advanced Tier 2 and 3 security operators to focus on threat analysis instead of struggling with process and toil. Mandiant Threat Intelligence users now can elevate their core competencies to hunt, investigate, and remediate threats — using the same tools our own Mandiant experts use. 
  • Fuses threat intelligence and AI-based analytic capabilities, which are unsurpassed in the market. VirusTotal Code Insight enables security teams to help gain insights and identify threats in suspicious code. This can significantly enhance their ability to detect and mitigate potential attacks.

However, this is just an initial step. We’ll continue to iterate and innovate, and we encourage customers and partners to leverage Security AI Workbench in new and exciting ways. Moving forward, we anticipate many new use cases to emerge over time. 

Building a safer future

While generative AI has recently captured the imagination, Sec-PaLM is based on years of foundational AI research by Google and DeepMind, and the deep expertise of our security teams. This work includes new efforts to expand our partner ecosystem to provide businesses with security capabilities at every layer of the cybersecurity stack. We have only just begun to realize the power of applying generative AI to security, and we look forward to continuing to leverage this expertise for our customers and drive advancements across the security community.

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Case Study

How e-Com Firm Bukalapak Achieved 5X ROAS With Machine Learning

In 2018, Indonesia accounted for 94% of SEA’s $23 billion e-commerce industry. Today, the country’s massive e-commerce sector continues to grow, along with the number of brands looking for innovative ways to compete for a piece of the pie.

As one of the largest e-commerce companies in the regionBukalapak receives a high volume of website visitors via direct traffic, Shopping ads, Google Display Network ads, and YouTube ads.

But when the brand noticed too many potential customers were browsing its website without converting, it knew it had to reconsider its marketing strategy. In an effort to reach consumers who were more likely to buy its products, Bukalapak turned to Smart Shopping campaigns.

Experimenting with Automation

By combining standard shopping and dynamic remarketing campaigns, Smart Shopping campaigns use automated bidding and ad placement to promote products to users across Search, Display, and YouTube. The automated solution also allows brands to reach high-value users who have already seen its ads or visited its site directly but left without converting.

Always open to trying new strategies, Bukalapak launched a three-month Smart Shopping campaign focused on 5% of its Shopping ads traffic using a maximize conversion value bidding strategy. The rest of the brand’s traffic (95%) was assigned standard shopping and dynamic remarketing campaigns, and the results of these were measured against the automated alternative.

The team was able to launch the Smart Shopping campaign with little manual effort by:

  • creating a separate campaign with a determined traffic split and a recommended daily budget.
  • uploading the Bukalapak logo and image banner for responsive display ads.
  • designating Indonesia as the country of sale.

The campaign combined the brand’s existing product feed with Google’s machine learning algorithm to serve more than 40 million products to potential customers across multiple channels — all while automating ad placement and bidding for maximum conversion value.

Smart Shopping Campaign Saves Time, Boosts ROAS

The Smart Shopping campaign achieved 5X higher ROAS than the standard shopping effort while also driving 4X more conversions and 300% growth in conversion value, leading to 2.5X more new customers.

“The automation not only allowed the team to focus less on manual campaign optimization but also helped them boost relevance among high-value users,” said Tushar Bhatia, associate vice president of growth at Bukalapak.

image

The impressive results encouraged Bukalapak to increase its investment in Smart Shopping campaigns by 27X over the past year. The brand plans to remain at the forefront of innovation by continually testing new products and further optimizing its campaign strategies.

Blog

Lufthansa: Wind Forecasting with Google Cloud ML Helps Increase On-time Flights

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Lufthansa and Google Cloud's collaboration leverages AI to predict disruptive winds, enhancing flight schedules and minimizing delays. Discover how advanced forecasting technology optimizes operations for better efficiency and passenger satisfaction.

The magnitude and direction of wind significantly impacts airport operations, and Lufthansa Group Airlines are no exception. A particularly troublesome kind is called BISE: it is a cold, dry wind that blows from the northeast to southwest in Switzerland, through the Swiss Plateau. Its effects on flight schedules can be severe, such as forcing planes to change runways, which can create a chain reaction of flight delays and possible cancellations. In Zurich Airport, in particular, BISE can potentially reduce capacity by up to 30%, leading to further flight delays and cancellations, and to millions in lost revenue for Lufthansa (as well as dissatisfaction among their passengers).

Being able to predict this kind of wind well in advance lets the Network Operations Control team schedule flight operations optimally across runways and timeslots, to minimize disruptions to the schedule. However, predicting speed and magnitude can be incredibly difficult to model and thus to predict— which is why Lufthansa reached out to Google Cloud.

Machine learning (ML) can help airports and airlines to better anticipate and manage these types of disruptive weather events. In this blog post, we’ll explore an experiment Lufthansa did together with Google Cloud and its Vertex AI Forecast service, accurately predicting BISE hours in advance, with more than 40% relative improvement in accuracy over internal heuristics, all within days instead of the months it often takes to do ML projects of this magnitude and performance.


“Being impressed with Google’s technology and prowess in the field of AI and machine learning, we were certain that my working together with their expert, to combine our technology with their domain expertise, we would achieve the best results possible,“ said Christian Most, Senior Director, Digital Operations Optimization at Lufthansa Group.

Collecting and preparing the dataset

The goal of Lufthansa and Google Cloud’s project was to forecast the BISE wind for Zurich’s Kloten Airport using deep learning-based ML approaches, then to see if the prediction surpasses internal heuristics-driven solutions and gauge the ease of use and practicality of the deep learning approach in production.

Since deep learning-based techniques require large datasets, the project relies on Meteoswiss simulation data, a dataset consisting of multiple meteorological sensor measurements collected from several weather stations across Switzerland over the past five years. By using this dataset, we obtained data on factors like wind direction, speed, pressure, temperature, humidity and more, at a 10 min resolution, along with some information about the location of the weather stations, such as altitude. These factors, which we hypothesized to be predictive of the BISE, ended up carrying valuable signals, as we would see later.

This collected data was next subjected to an extensive cleaning and feature engineering process using Vertex AI Workbench, in order to prepare the final dataset for training. The cleaning phase included steps to drop the features, or rows, that contained too many missing values, or failed statistical tests for entropy, etc. Since the direction of wind is a circular feature (between 0 and 360 degrees), this column/feature was replaced with two features: the corresponding sine and cosine embedding. The dataset was then flattened such that the columns contained all the relevant features and sensor measurements from all the weather stations at a particular 10-minute interval.

Since the target variable — i.e,. BISE — was not directly available, we engineered a proxy target variable for BISE called “tailwind speed around runway,” which above a certain threshold indicates the presence of BISE along the runway.

Forecasting wind in the Cloud

Once the dataset was ready, Lufthansa and Google Cloud evaluated several options before deciding to experiment and tune Vertex AI Forecast, Google’s AutoML-powered forecasting service, in order to achieve optimum results. Vertex Forecast is capable of the required feature engineering, neural architecture search, and hyper parameter tuning, and it is managed by Google Cloud to score in the top 2.5% in the M5 Forecasting Competition on Kaggle, in a completely automated fashion. These qualities made it an excellent choice for Lufthansa, to reduce the manual overhead of creating, deploying, and maintaining top performing deep learning models.

The raw data files were loaded from cloud storage, preprocessed on Vertex AI Workbench. Then, a training pipeline was initiated on Vertex AI Pipelines, which performed the following steps in sequence:

The .csv data file was loaded from Cloud Storage into a Vertex AI managed dataset.

A Vertex AI forecasting training job was initiated with the dataset, and it was also registered as a model in the Vertex AI Model Registry.

Upon completion, the model was evaluated on the test set, and the model’s predictions and the input features and ground truth of the test set, were stored in a user-defined table in BigQuery. Several test metrics were also available on the service and model dashboards.

One of the biggest challenges was the severe imbalance in the dataset, as measurements with BISE were very far and few in between. In order to account for this, instances where BISE occurred, as well the occurrences temporally close to them, were upweighted using weights calculated with methods including Inverse of Square Root of Number of Samples (ISNS), Effective Number of Samples (ENS), and Gaussian reweighting. The formulas for the methods are given below. These weights were supplied as separate columns in the dataset, and were iteratively used thereafter by the service as the “weight” column.

ISNS


ENS

Weighted gaussian


Results and next steps

Fig 1. Recall for 2-hour horizon
Fig 2. F1 Score for a 2-hour Horizon


In the above figures, the x-axis represents the forecast horizon and the Y-axis shows the respective metrics (Recall/F1-score). As shown after multiple experiments, we can see Vertex AI Forecast achieved higher recall and precision t (red bar), outperforming Lufthansa’s internal baseline heuristics, with the performance gap widening steadily as the forecast horizon extends further into the future. At the two-hour mark, our custom-configured Vertex AI Forecast model improved by 40% relative to the internal heuristics and 1700% compared to the random guess baseline. As we saw with other experiments, at a six-hour forecast horizon, the performance gap widens even more, with Vertex AI Forecast in the lead. Since forecasting BISE a few hours in advance is very beneficial to prevent flight delays for Lufthansa, this was a great solution for them.

“We are very excited to be able to not only do accurate long term forecasts for the BISE, but also that Vertex AI Forecasting makes training and deploying such models much easier and faster, allowing us to innovate rapidly to serve our customers and stakeholders in the best possible manner,” said Swiss Oliver Rueegg, Product Owner, Swiss International Airlines.

Lufthansa plans to explore productionizing this solution by integrating it into their Operations Decision Support Suite, which is used by the network controllers in the Operations Control Center in Kloten, as well as to work closely with Google’s specialists to integrate both Vertex AI Forecast and other of Google’s AI/ML offerings for their use cases.

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Data Science Teams: A Practitioners Guide to MLOps

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Across industries, DevOps and DataOps have been widely adopted as methodologies to improve quality and reduce the time to market of software engineering and data engineering initiatives.

With the rapid growth in machine learning (ML) systems, similar approaches need to be developed in the context of ML engineering, which handle the unique complexities of the practical applications of ML. This is the domain of MLOps.

MLOps is a set of standardized processes and technology capabilities for building, deploying, and operationalizing ML systems rapidly and reliably.

Inside, you will find an outline of an MLOps framework that defines core processes and technical capabilities. Organizations can use this framework to help establish mature MLOps practices for building and operationalizing ML systems.

Adopting the framework can help organizations improve collaboration between teams, improve the reliability and scalability of ML systems, and shorten development cycle times. These benefits in turn drive innovation and help gain overall business value from investments in ML.

Case Study

KLM’s Doubles Bookings With the Same Spend With Machine Learning

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As the flag carrier airline of the Netherlands, the vision of KLM’s marketing programme is to humanise advertising through personalisation and relevance at scale. Its experiments with machine learning revealed it could lower cost per booking by 40%, achieve more than twice as many bookings at the same spend, and drive a 1.4x click-through rate.

GOALS

  • Develop smarter, more effective media buying models through data
  • Drive relevant advertising
  • Scale predictive modelling across all touchpoints in the customer journey

APPROACH

Combined contextual data to create a predictive model with granular layers

Activated data in real-time

RESULTS

  • 40% lower cost per booking
  • More than twice as many bookings at same spend
  • 1.4 times higher click-through rate for test group than control

KLM partnered with Relay42, whose data management platform (DMP) empowers marketers to achieve data-driven personalisation at scale.

The Relay42 DMP works by stitching together all touchpoints and data sources (including all Google solutions), orchestrating customer journeys in real-time and then activating the unified data to drive business and user experience results.

klm chartv2
Fig. 1: By collating and enriching data sources and touchpoints, the Relay42 DMP serves as KLM’s customer journey orchestration engine. This approach helps KLM meet its objective of humanising advertising through agile and connected data.

Relay42 and KLM created a data flow setup with the Relay42 DMP at the core. Thanks to Relay42’s tag management system, all customer interactions on KLM’s website and app, as well as relevant indicators from other channels and data sources such as email, social, CRM, call center and affiliates can be tracked and synced in Google Analytics 360.

Data gathered via Relay42’s own tags and DoubleClick Floodlight tags can also be sent from the DMP to the DoubleClick platform so that relevant ads can be targeted to appropriate audiences.

In order to perform deep-dive analyses, KLM simply exports raw-level data (from DoubleClick using Data Transfer and from Google Analytics 360 through seamless integration) to BigQuery. BigQuery can then correlate site behaviour with ad impressions, which enables Relay42 to activate the data and inform the build of predictive models.

“We believe that data in combination with technological innovation is bound to make advertising smarter and more relevant on every touchpoint. By combining data sources, leveraging first-party data and activating this in real-time, advertising can turn into a personal dialogue, a rewarding one-to-one interaction instead of one-to-many push messaging.”

– Kevin Duijndam, Cross Channel Marketing Manager, KLM

A Predictive Model to Improve Display Remarketing

KLM decided to test a new approach to remarketing.

“Our goal was to get rid of irrelevant ads, as they are simply annoying”, explains Kevin Duijndam, the airline’s Cross Channel Marketing Manager.

“Our assumption was that people who fly with us often already know us, so it would be irrelevant to tell them about flying with us again. However, we were wondering when exactly someone is a ‘frequent flyer’. The more we thought about it, the more complex the set of business rules became, so in the end we realized we couldn’t just focus on frequent flyers, but instead should use machine learning to understand when ads are irrelevant.”

KLM developed a real-time buying setup to include predictive modelling. In this setup, website and app interactions are tracked in the DMP thanks to the Relay42 tag management system.

Relevant consumer behaviour can be streamed in real-time to a prediction engine developed by KLM in the Google Cloud Platform, with the outputs then streamed straight back to the DMP. From here, the DMP can activate rule-based segments based on the prediction outcome. And by syncing this with DoubleClick, ads can be served and targeted to maximise relevance.

klm chartv22
Fig. 2: KLM linked the Relay42 DMP customer interaction data to their predictive model to predict how relevant their ads would be. The setup enabled a decision to be made in real-time whether or not to serve a specific ad to a user.

The team tested their new predictive model to assess any gains in performance. KLM deliberately chose to measure the results in an A/B setup within a defined period rather than measuring the differences year over year or month over month. Such comparisons are less reliable due to rapid changes relating to seasonality, internal capacities and external factors caused by competitors.

Business Gains and Customer Experience Wins

In the test, KLM linked the Relay42 DMP customer interaction data to their predictive model to predict how relevant their ads would be. The setup enabled a decision to be made in real-time whether or not to serve a specific ad to a user.

Through the A/B tests it became clear that the new model in fact did generate a significant uplift in bookings. With the cost per booking 40% lower during the test period, KLM was able to achieve more than twice as many bookings at the same spend.

 The test produced wins in terms of customer experience, too. The click-through rate for the test group was more than 1.4 times higher than for the control group, indicating that the new model was successfully reaching users with messages they found to be relevant rather than annoying.

 The success goes beyond improving KLM’s display remarketing efforts, though.

“Even more importantly, we’ve laid the IT data flow foundation in such a way that KLM is now able to execute on our data through all of our digital marketing channels and apply our prediction models at scale”, Kevin says. “So we can be flexible to plug in other models but can also now scale through other online media channels like search or video.”

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