Time to go outside again, I guess. I’ll need a sun hat. Sunscreen. Maybe some new sandals? What else?

With the Recommendations AI service, I might be reminded to grab a reusable water bottle and a swimsuit. Or some after-sun aloe lotion. Good thing, cause I’ll need it.

Recommendations AI is a solution that uses machine learning to bring product recommendations to their shoppers across any catalog or client list. This service is part of our full suite of Retail solutions. When you integrate with the Retail API, you get the benefit of Google’s Product Discovery. Integrating once to reap the benefits over and over. Recommendations is the starting point, and you can easily extend into Retail Search and Vision Product Search in the upcoming future. 

The Recommendations solution is fully managed, global-scale and powered by deep learning, so you can focus on a great shopping experience and let someone else worry about the infrastructure.

Compared to baseline recommendation systems used by customers, Recommendations AI showed double digit uplift in conversion and clickthrough rates in A/B experiments controlled by the customers. You can optimize for click-through, conversion or session revenue, and fine tune the models to make sure you omit out-of-stock items or duplicates, for example.

So how does it work, and how do you get started? Read on, and we’ll walk you through the pipeline, starting with the data you already have to placement in your online store. 

Formula: Data -> Model -> Placement

You start with your catalog, the list of all the things (postcards, movies, pie recipes) that you want to show your customers. Then you ingest your PII-redacted user events -this is the historic event data like home page views, add to cart events and more along with real time user events. This user event is joined with the product catalog and items that allows us to construct the sequence of shoppers’ activity, thus being able to predict what the shopper has a high propensity to purchase next. The user events can come from both online activity across devices or offline store purchases

The recommendation model will return a list of products, which are the recommendations. The brains of the operation, if you will. This model is trained using all the data that you ingest, using the latest neural network models and techniques that Google has built expertise over the years in flagship products like Youtube and News, that allows us to uncover shopper intent,  so it can best predict the right recommendations to show to the right people.

Every model outputs a list of product identifiers, but where do they go? They go into placements, the spots, panels, carousels on your customer’s journey interacting with your brand that you’ve set aside to highlight recommendations. A model can send recommendations to one or more placements, but each placement only receives information from one recommendation model. Your pages will then need to render the products with the right images, text or other metadata, using the product ID that is returned by the model.

What do recommendations look like?

Let’s start by browsing our postcard-selling website, where I’ve been buying some vintage California postcards already. The recommendations algorithm has caught on to my interest, showing me other potential cards to purchase based on my history:

Put your data to work

To get started we need to bring your data into the recommendation model, so it can understand your customers, your inventory, and your sales patterns. 

The model takes in the product catalog you use, and metadata about those products to better understand nuances in assortment, pricing and variables like size and style. You might already have this data stored in BigQuery or Merchant Center, and hence we provide easy integrations that you can leverage to get started even faster.

As for the user events, don’t worry if you already have systems in place to capture web and mobile activity. We make it easy to bring in your real time event logs by providing seamless integrations with Google Tag Manager, Javascript pixel, or even historic events from Cloud Storage, BigQuery or using inline API or JSON, so you can immediately train the models on this imported  data. All this allows you to kickstart integrating with Recommendations AI in a matter of days.

The models then construct a sequence of activities that the user went through and joins with the products that the user engaged with. Once your data is ready to go, it takes a few days to train the model. Next onto making the data work for you.

Quickly customize your model

Setting up your own recommendations project in the console gives you the ability to choose what sort of model to train (based on what recommendations you want to generate) and your objective. Are you optimizing for click-through rate–more people click on the recommendation links or products–or for conversion rate–more people choose or buy what was suggested or revenue ?

Different models can be optimized for different optimization goals.; the GCP console explains what each one can do and how you can choose to optimize it.

Let’s unpack some of this terminology real quick.

We’ve got three model types:

• Recommended for you – Means we think these are items you’ll want to buy, based on your history; this is usually used on a home page to showcase items.
• Others you may like – Means if you’re browsing the page of a water bottle, we will recommend  alternative brands of water bottles that you may like as well as a backpack, based on your engagement  history.
• Frequently bought together – Means that when anyone buys sunscreen, we notice that they often also buy aloe lotion, so we will surface those items when someone adds any one of them to their cart.

And then we have three business objectives that the models optimize for:

• Click-through rate – How frequently did somebody click on a recommended item?
• Conversion rate– How frequently did somebody add a recommended item to their cart?
• Revenue per session – How much money did the recommendations generate for you?

Deliver anywhere along the journey

Now that you’re all set up in the Retail AI console, you can test out the recommendations in the console, even before you deploy to production.

You can integrate Recommendations into your frontend by calling the Predict APIt. The placements of recommendations will report data back into the dashboard and you can analyze and measure success for future iterations. 

On top of that you can use the recommendations for other parts of your customer’s journey. Email promotions, storefront kiosks, display ads or follow-up notifications can include recommendations based on past activity and cart contents. The model gives you useful product recommendations for a wide variety of touchpoints and steps in the purchasing process.

More best practices, and guides, are available inside our documentation.

How to get started

Training your own models can be tedious, time-consuming, and expensive. On top of that it requires deeper data science expertise to set up. Let us do it instead!

You can see how IKEA Retail uses Recommendations AI in this recent talk and blog from the Google Cloud Retail Summit..

To get started today you’ll need to make a Cloud project and enable the Retail API, which then allows you to access all the recommendation tools in one menu. Bring in your catalog and purchasing data, define a placement or two, and you can start putting recommendations on your site in a matter of days.

Alphabet CEO Sundar Pichai has compared the potential impact of artificial intelligence (AI) to the impact of electricity—so it may be no surprise that at Google Cloud, we expect to see increased AI and machine learning (ML) momentum across the spectrum of users and use cases.

Some of the momentum is more foundational, such as the hundreds of academic citations that Google AI researchers earn each year, or products like Google Cloud Vertex AI accelerating ML development and experimentation by 5x, with 80% fewer lines of code required. Some are more concrete, like mortgage servicer Mr. Cooper using Google Cloud Document AI to process documents 75% faster with 40% cost savings; Ford leveraging Google Cloud AI services for predictive maintenance and other manufacturing modernizations; and customers across a wide range of industries deploying ML platforms atop Google Cloud.

Together, these proof points reflect our belief that AI is for everyone, and that it should be easy to harness in workflows of all kinds and for people of all levels of technical expertise. We see our customers’ accomplishments as validation of this philosophy and a sign that we are taking away the right things from our conversations with business leaders. Likewise, we see validation in recognition from analysts, which recently includes Google being named a Leader by

Gartner® in the 2022 Magic Quadrant™ for Cloud AI Developer Services report

Forrester in the Forrester Wave™: AI Infrastructure, Q4 2021 report, the Forrester Wave™: Document-Oriented Text Analytics Platforms, Q2 2022 report, and The Forrester Wave™: People-Oriented Text Analytics Platforms, Q2 2022 report

In June, we talked about four pillars that guide our approach to creating products for MLOps and to accelerate development of ML models and their deployment into product. In this article, we’ll look more broadly at our AI and ML philosophy, and what it means to create “AI for everyone.”

AI should be for everyone

One of the pillars we discussed in June was “meeting users where they are,” and this idea extends far beyond products for data scientists. Technical expertise should not be a barrier to implementing AI—otherwise, use cases where AI can help will languish without modernization, and enterprises without well-developed AI practices will risk falling behind their competitors.

To this end, we focus on creating AI and ML services for all kinds of users, e.g.:

• DocumentAI, Contact Center AI, and other solutions that inject AI and ML into business workflows without imposing heavy technical requirements or retraining on users;
• Pre-trained APIs, ranging from Speech to Fleet Optimization, that let developers leverage pre-trained ML models and free them from having to develop core AI technologies from scratch;
• BigQuery ML to unite data analysis tasks with ML;
• AutoML for abstracted and low-code ML production without requiring ML expertise;
• Vertex AI to speed up ML experimentation and deployment, with every tool you need to build deploy and the lifecycle of ML projects
• AI Infrastructure options for training deep learning and machine learning models cost effectively. Including Deep Learning VMs optimized for data science and machine learning tasks and AI accelerators for every use case, from low-cost inference to high-performance training.

It’s important to provide not only leading tools for advanced AI practitioners, but also leading AI services for users of all kinds. Some of this involves abstracting or automating parts of the ML workflow to meet the needs of the job and technical aptitude of the user. Some of it involves integrating our AI and ML services with our broader range of enterprise products, whether that means smarter language models invisibly integrated into Google Docs or BigQuery making ML easily accessible to data analysts. Regardless of any particular angle, AI is turning into a multi-faceted, pervasive technology for businesses and users the world over, so we feel technology providers should reflect this by building platforms that help users harness the power of AI by meeting them wherever they are.

How we’re powering the next generation of AI

Creating products that help bring AI to everyone requires large research investments, including in areas where the path to productization may not be clear for years. We feel a foundation in research combines with our focus on business needs and users to inform sustainable AI products that are in keeping with our AI principles and encourages responsible use of AI.

Many of our recent updates to our AI and ML platforms began as Google research projects. Just consider how DeepMind’s breakthrough AlphaFold project has led to the ability to run protein prediction models in Vertex AI. Or how research into neural networks helped create Vertex AI NAS, which lets data science teams train models more accurately with lower latency and power requirements.

Research is crucial, but also only one way of validating an AI strategy. Products have to speak for themselves when they reach customers, and customers need to see their feedback reflected as products are iterated and updated. This reinforces the importance of seeing customer adoption and success across a range of industries, use cases, and user types. In this regard, we feel very fortunate to work with so many great customers, and very proud of the work we help them accomplish.

I’ve already mentioned Ford and Mr. Cooper, but those are just a small sampling. For example, Vodafone Commercial’s “AI Booster” platform uses the latest Google technology to enable cutting-edge AI use cases such as optimizing customer experiences, customer loyalty, and product recommendations. Our conversational AI technologies are used by companies ranging from Embodied, whose Moxie robot helps children overcome developmental challenges, to HubSpot connecting meeting notes to CRM data. Across our products and across industries around the world, customer stories grow by the day.

We also see validation in our partner network. As we noted in the pillars discussed in June, partners like Nvidia help us to ensure customers have freedom of choice when building their AI stacks, and partners like Neo4j help our customers to expand our services into areas like graph structures. Partners support our mission to bring AI to everyone, helping more customers use our services for new and expanded use cases.

Accelerating the momentum

Overall, to create products that reflect AI’s potential and likely future ubiquity, we have to take all of the preceding factors, from research to customer and analyst conversations to working with partners, and turn them into products and product updates. We’ve been very active over the last year, from the launch of Call Center AI Platform in March, to the new Speech model we released in May, to a range of announcements at the Google Cloud Applied ML Summit in June. We have much more planned in coming months, and we’re excited to work with customers not just to maintain the pace of AI momentum, but to accelerate it. To learn more about Google Cloud’s AI and ML services, visit this link or browse recent AI and ML articles on the Google Cloud Blog.

GARTNER and MAGIC QUADRANT are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

We are increasingly seeing one question arise in virtually every customer conversation: How can the organization save costs and drive new revenue streams? 

Everyone would love a crystal ball, but what you may not realize is that you already have one. It’s in your data. By leveraging Data Cloud and AI solutions, you can put your data to work to achieve your financial objectives. Combining your data and AI reveals opportunities for your business to reduce expenses and increase profitability, which is especially valuable in an uncertain economy. 

Google Cloud customers globally are succeeding in this effort, across industries and geographies. They are improving ROI by saving money and creating new revenue streams. We have distilled the strategies and actions they are implementing—along with customer examples and tips—in our eBook, “Make Data Work for You.” In it, you’ll find ways you can pare costs, increase profitability, and monetize your data.  

Find money in your data 

Our Google Cloud teams have identified eight strategies that successful organizations are pursuing to trim expenses and uncover new sources of revenue through intelligent use of data and AI. These use cases range from scaling small efficiencies in logistics to accelerating document-based workflows, monetizing data, and optimizing marketing spend.

The results are impressive. They include massive cost savings and additional revenue. On-time deliveries have increased sharply at one company, and procure-to-pay processing costs have fallen by more than half at another. Other organizations have reaped big gains in ecommerce upselling and customer satisfaction.

We’ve found that businesses across every industry and around the globe are able to take action on at least one of these eight strategies. Contrary to common misperceptions, implementation does not require massive technology changes, crippling disruption to your business, or burdensome new investments. 

What success looks like 

If you worry your business is not ready or you need to gain buy-in from leadership, the success stories of the 15 companies in this report are helpful examples. Learning how organizations big and small, in different industries and parts of the world, have implemented these data and AI strategies makes the opportunities more tangible.

Carrefour 
Among the world’s largest retailers, Carrefour operates supermarkets, ecommerce, and other store formats in more than 30 countries. To retain leadership in its markets, the company wanted to strengthen its omnichannel experience.

Carrefour moved to Google Data Cloud and developed a platform that gives its data scientists secure, structured access to a massive volume of data in minutes. This paved the way for smarter models of customer behavior and enabled a personalized recommendation engine for ecommerce services. 

The company saw a 60% increase in ecommerce revenue during the pandemic, which it partly attributes to this personalization. 

ATB Financial 
ATB Financial, a bank in the Canadian province of Alberta, uses its data and AI to provide real-time personalized customer service, generating more than 20,000 AI-assisted conversations monthly. Machine learning models enable agents to offer clients real-time tailored advice and product suggestions. 

Moreover, marketing campaigns and month-end processes that used to take five to eight hours now run in seconds, saving over CA$2.24 million a year. 

Bank BRI
Bank BRI, which is owned by the Indonesian government, has 75.5 million clients. Through its use of digital technologies, the institution amasses a lot of valuable data about this large customer base. 

Using Google Cloud, the bank packages this data through more than 50 monetized open APIs for more than 70 ecosystem partners who use it for credit scoring, risk management, and other applications. Fintechs, insurance companies, and financial institutions don’t have the talent or the financial resources to do quality credit scoring and fraud detection on their own, so they are turning to Bank BRI. 

Early in the effort, the project generated an additional $50 million in revenue, showing how data can drive new sources of income. 

How to get going now

“Make Data Work for You” will help you launch your financial resiliency initiatives by outlining the steps to get going. The process lays the groundwork for realizing your own cost savings and new revenue streams by leveraging data and AI.

Among these steps include building frameworks to operate cost efficiently, make informed decisions related to spending and optimize your data and AI budgets.

Operate: Billing that’s specific to your use-case
Control your costs by choosing data and analytics vendors who offer industry-leading data storage solutions and flexible pricing options. For example, multiple pricing options such as flat rate and pay-as-you-go allow you to optimize your spend for best price-performance.

Inform: make informed decisions based on usage
Use your cloud vendor’s dashboards or build a billing data report to gain insights on your spending over time. Make use of cost recommendations and other forecasting tools to predict what your future expenses are going to be.

Optimize: Never pay more than you use 
While planning data analytics capacity, organizations often overprovision and overpay than what they actually use. Consider migrating your workloads that have unpredictable demand to a data warehousing solution that offers granular level autoscaling features so that you never have to pay for more than what you use.

There are other key moves that will set your initiative up for success including how to shorten time to value in building AI models and measuring impact. You can find details in the report.

A brighter future

The teams at Google Cloud helped the companies in “Make Data Work for You,” along with many more organizations, use their data and AI to achieve meaningful results. Download the full report to see how you can too.