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Signal Generation in the Investment Management Industry
Machine learning is seeing a lot of use cases in the financial sector. One of them is leverage AI to sift signal from noise and create insights or predictions that can give financial planners an edge.
In this video, David Li, Head of Advanced Analytics, BlackRock and Colman Madden, Customer Engineer, Google Cloud, present on how BlackRock leverages NLP on Google Cloud to search for signals in the investment management industry.
“We analyze large volumes of textual news via NLP to classify text into sentiment scores as well as other metrics such as news volume and emotions in these articles,” says David Li.
He also discusses some of the challenges they faced, and the solutions they found, and why they selected Google Cloud to run this project.
Lufthansa: Wind Forecasting with Google Cloud ML Helps Increase On-time Flights

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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


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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How Real Companies Are Innovating with AI Today—and the Benefits They’re Seeing
What do you get when you mix Target, women’s swim wear, and AI? “Joy!” says Mike McNamara, CIO and CDO, Target.
McNamara is just one of the many stories of real businesses conquering old challenges, and new disruptive industry challenges, with artificial intelligence.
McNamara, Nick Rockwell, CTO, The New York Times, Larry Colagiovanni, VP New Product Development, eBay, and Dirk John, CIO, LATAM Airlines, demonstrate how AI solutions allow businesses to find opportunity in chaos, innovation under tough conditions, and revenue in the most unlikely of places.
AI at Target
McNamara shows how AI is being applied to solve some of the most basic, yet critical, challenges that retailers like Target–and any business with large inventories—face. (start at 4:04)
AI at The New York Times
Nick Rockwell, CTO, The New York Times, shares how AI and big data tools are being used to leverage old assets and drive business ideas from them. (start at 12:18)
AI at eBay
Larry Colagiovanni, VP New Product Development, eBay, talks about how AI is helping eBay drive conversational commerce, help buyers sift through 1.1 billion items, and personalize the shopping experience.(start at 28:07)
AI at LATAM Airlines
Dirk John, CIO, LATAM Airlines, discusses how LATAM Airlines adopted advanced analytics tools in just a few weeks to accelerate the company’s understanding of their customers’ needs.(start at 35:58)
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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.
Telehealth Improves Patient and Clinical Experiences across Continuum of Care

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According to a National Academy of Medicine discussion paper, social determinants of health (SDoH) account for upwards of 80% of a population’s health outcomes. Breaking this down further, 50% come just from socioeconomic and physical environment factors such as education, employment, income, family and social support, community safety, air and water quality, and access to housing and transit. SDoH determine access to and quality of healthcare, and are contributors to a system of disparate access to care.


We believe that to more efficiently provide comprehensive healthcare access to more people, providers will leverage technology to blend in-person and virtual modes of care delivery.
In this article, Amwell and Google Cloud examine five ways telehealth – as part of a provider’s overall care model – can help democratize access to healthcare. (graphic url)
Remove distance as a barrier to care
8.6 million Americans live more than 30 minutes from their nearest hospital. Long drives can deter patients from seeking care or maintaining routine visits. On the flip side, 92% of Americans nationwide have access to wired broadband in the home or through mobile broadband. Therefore, having a virtual visit just a click away can help remove barriers to care, like distance.
Eliminate the risk of unnecessary exposure
Virtual care means that patients don’t have to worry about potential exposure in transit, while sitting in waiting rooms, or from direct interactions during in-person health visits. This is particularly relevant when it comes to those with chronic diseases or underlying conditions. Telehealth provides patients who may be more susceptible to diseases with access to continuous healthcare without putting them at higher risk for developing more severe symptoms. Virtual visits can occur in the comfort –and safety– of patients’ homes.
Extend access to specialized care
55% of preventable hospitalization or mortality in rural settings is due to lack of access to specialty care. With telehealth, physical proximity to specialized services–typically in urban areas–can be reduced as a limiting factor. Virtual solutions grant everyone access to top specialists, regardless of location.
Save time and money
By augmenting in-person visits with telehealth applications, providers can benefit from greater efficiencies in scheduling, helping to improve their bottom line, and add more flexibility to their workday. Meanwhile, patients can spend less on travel and childcare, limit time taken off work, and save on other costs associated with in-person visits — for a savings of $35 to $690 per visit. In a survey by the COVID-19 Healthcare Coalition, 76% of the 2,000+ patients surveyed across the US responded that transportation was removed as a barrier, 65% reported they no longer had to take time off from work for an appointment, and 67 percent reporting lower costs than an in-person visit.
Combat physician shortage and fatigue
Research shows there will be a shortage of more than 100,000 doctors by 2030. In the midst of a physician shortage, telehealth can help improve care delivery and make it more efficient, ensuring more people can still have their healthcare needs addressed. Additionally, by integrating intelligence such as case triaging along with telehealth into a virtual care model, providers can help reduce clinician burnout.
Amwell and Google Cloud are partnering to deliver transformative telehealth solutions that will make it easier for more patients to receive care and improve patient and clinician experiences across the continuum of care. One example includes embedding real-time captioning and translation services powered by Google Cloud’s AI and NLP technologies within the Amwell platform to increase health access and understanding for more people.
As physicians, we are excited that the future of healthcare will continue to blend cloud technologies like EHR-integrated telehealth platforms, AI, healthcare-trained virtual agents along with in-person care to create an integrated hybrid care model that will improve patient outcomes and unburden providers, all while expanding access to broader patient populations.
To learn more, download the whitepaper “Healthcare’s Virtual Transformation,” written in conjunction with Becker’s Hospital Review.
1: “Social Determinants of Health 101 for Health Care: Five Plus Five,” National Academy of Medicine, October 2017
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Hospitals Can Offer Interconnected Patient Experiences Using Google’s Natural Language Services
Machine Learning (ML) in healthcare helps extract data from conversations, medical records, forms, research reports, insurance claims and other documents across the care value-chain to help care providers have a holistic view of their patients to draw insights for diagnoses and treatments. With Natural Language Processing(NLP), healthcare organizations can program computers and systems to process and analyse large volumes of human communication in form of spoken texts, written documentation and utterances. Watch the video to learn how the healthcare community can leverage Google’s NLP services to process structured and unstructured data to offer interconnected experiences for patients.
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