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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to Bloomberg

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Speaker 1: Business Week with Carol Masser and Tim Stenovek on Bloomberg Radio. Well,

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Speaker 1: Alphabet Shares, the parent company of Google, hitting a new

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Speaker 1: all time high today. You'll remember that last month the

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Speaker 1: company reported Google Cloud revenue and operating income topped analysts projections.

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Speaker 1: Our own Bloomberg Intelligence is Mandeep sing writing after earnings

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Speaker 1: that Google's increase capex you buy ten billion dollars for

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Speaker 1: the full year suggests cloud segment growth is likely to

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Speaker 1: remain above thirty percent through the second half of the year.

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Speaker 1: We've got with us a man Deep Singh's Global head

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Speaker 1: of Technology Research at Bloomberg Intelligence, also joining us Yasmin Ahmed,

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Speaker 1: Managing Director of Data Cloud at Google Cloud. Both of

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Speaker 1: them join us here in the Bloomberg Interactive Broker Studio.

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Speaker 1: I should note Yasmin will be featured on an upcoming

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Speaker 1: episode of the Tech Disruptors podcast with man Deep Seing.

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Speaker 1: Be sure to check that out where you get your podcasts.

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Speaker 1: I want to actually start with you, Man Deep, and

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Speaker 1: just set the scene for us a little bit about

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Speaker 1: why you want to speak to someone like Yasmine on

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Speaker 1: the podcast. I mean, look, she's sitting right here by

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Speaker 1: the way she is and so she can hear you.

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Speaker 2: I thank you for the shout out on the tech

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Speaker 2: Test Disruptors episode. Look, Google Cloud, I mean, if it

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Speaker 2: was a separate company, you know, fifty billion dollar rund

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Speaker 2: rate segment growing at over thirty percent, just think about it,

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Speaker 2: they could exceed you know, one hundred billion dollars in

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Speaker 2: revenue over the next two three years. So clearly there

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Speaker 2: is a lot of exciting things that are going on.

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Speaker 2: And talking to Yasmin, it was pretty obvious that, you know,

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Speaker 2: they have a lot of products at the database level

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Speaker 2: that are doing very well when it comes to AI

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Speaker 2: agents and just how companies are looking at deploying generative AI.

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Speaker 1: So let's go right there. Yeah, I mean, come on

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Speaker 1: in to the conversation and talk a little bit about

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Speaker 1: what Mandeep was saying when it comes to the AI

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Speaker 1: agents and how they're utilizing Google Cloud right now.

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Speaker 3: So AI agents are transforming for our customers their business

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Speaker 3: as they deploy. Now, these highly sophisticated agents that can

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Speaker 3: optimize entire supply chains, that can transform how customer experience looks.

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Speaker 3: If you take Wayfair for example, they're doing visual search,

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Speaker 3: so as a customer, you can upload a picture. That

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Speaker 3: picture is used to find similar products in the catalog

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Speaker 3: and bring those back. So Wayfair are seeing a fifteen

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Speaker 3: percent improvement in conversion from that kind of visual search.

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Speaker 3: That's why you see customers looking at how can we

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Speaker 3: deploy more of these agents and new AI apps across

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Speaker 3: the enterprise. So how has Jenny I also impacting the

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Speaker 3: work for data scientists and data developers On that end,

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Speaker 3: we see huge impact. I'll actually go back to my

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Speaker 3: experience when I first came out of university. I was

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Speaker 3: a software engineer and I got given all of the

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Speaker 3: mundane tasks refactoring the TECHTA, writing code, lambs, code tests,

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Speaker 3: and it felt like a penance you had to pay. Well,

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Speaker 3: with code agents and data engineering agents and data science agents,

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Speaker 3: we can take all of that mundane task away and

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Speaker 3: allow developers, data scientists, data engineers to actually focus on

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Speaker 3: solving business problems. In fact, Honeywell have said the use

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Speaker 3: of these coding agents from Google have enabled their developers

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Speaker 3: to operate seventy percent faster, so huge amounts of efficiency gain,

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Speaker 3: but also just an elevated role.

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Speaker 2: For these humans, So yes, Ben, can I jump in there?

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Speaker 2: So what do you think customers are replacing here? Given

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Speaker 2: you know, I mean all these sounds great, but if

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Speaker 2: you're an enterprise, you have to find budgets to you know,

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Speaker 2: deploy all this at scale, and generative AI, as we know,

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Speaker 2: is quite expensive. So what is it that they are

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Speaker 2: displacing to invest in generative AI?

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Speaker 3: I think generatively I is not just about augmenting now

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Speaker 3: new technology and bolting on more costs. In fact, the

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Speaker 3: most transformative use cases actually get to the heart of

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Speaker 3: a business and rewire the way work gets done. So

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Speaker 3: if we look at some of our customers and use cases.

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Speaker 3: For example, Optis, they are Australia's second largest tech telecommunications company.

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Speaker 3: They've now deployed a networking agent that is actually scanning

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Speaker 3: all of the network signals, identifying potential issues in the future,

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Speaker 3: and creating service now tickets three weeks ahead of a

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Speaker 3: network issue actually happening. This is rewiring how an organization

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Speaker 3: works and it helps them avoid future cost future complexity

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Speaker 3: that they would have to deal with.

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Speaker 2: So you are convinced on the ROI of this, Jenny,

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Speaker 2: I spend that we debate every day whether there is enough.

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Speaker 1: This is the question we always ask you about.

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Speaker 2: Right, because she interfaces with the customers day in and

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Speaker 2: day out. Do you convince on that.

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Speaker 3: I am convinced because I heard the stories from our customers.

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Speaker 3: But also recently we published a blog six hundred plus

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Speaker 3: use cases from our customer ecosystem tangible use cases delivering

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Speaker 3: ROI and value. However, I also recognize many organizations are

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Speaker 3: super anxious. There's a lot of anxiety around the spend

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Speaker 3: of on Jenny I about how to get to that ROI.

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Speaker 3: The customers I see succeeding and moving the fastest are

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Speaker 3: those that are getting out into pilots and trying things out,

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Speaker 3: finding the low hanging fruit, and then building on topic.

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Speaker 2: Agents are not hallucinating for the customers that you have deployed.

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Speaker 3: Well, Hallucination a huge concern for CIOs as they deploy

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Speaker 3: this technology. But this is one of the core challenges

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Speaker 3: we recognize two years so go at Google. So when

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Speaker 3: we built AI into our data cloud, that's actually one

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Speaker 3: of the first challenges we set out to solve. Is

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Speaker 3: AI must be grounded in business context and business data,

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Speaker 3: i e. If it can't find the answer from the

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Speaker 3: business data it can't hallucinate, It actually needs to ask

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Speaker 3: you a question back and disambiguing. So solving for trust

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Speaker 3: and AI has been a core part of the data

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Speaker 3: and a cloud strategy.

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Speaker 1: You mentioned anxiety around hallucinations, but there's also anxiety around

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Speaker 1: job displacement as a result of this technology. I hosted

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Speaker 1: a dinner in Atlanta at an event that we did recently,

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Speaker 1: Bloomberg Business Value of AI Event, and by far the

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Speaker 1: topic that dominated the conversation was like, what is the

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Speaker 1: labor landscape going to look like in the coming years

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Speaker 1: as these agents displace workers even more so than they

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Speaker 1: have now, how do you think about that?

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Speaker 3: Being part of Google, we're one hundred and eighty thousand

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Speaker 3: calls leagues across the globe, we actually get to see

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Speaker 3: those dynamics playing out. So on one hand, we have engineers.

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Speaker 3: Even at Google, we're seeing thirty to forty percent of

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Speaker 3: our code now being written by Gemini.

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Speaker 1: Yeah, so the entry level coders aren't needed anymore.

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Speaker 3: So we don't need to hire as many developers as

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Speaker 3: we potentially historically had to do to ramp up to

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Speaker 3: where the business is growing. However, on the other hand,

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Speaker 3: AI has a transformational impact on business outcomes. So IHD

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Speaker 3: the Hotels Group, they're actually hiring developers to build the

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Speaker 3: next generation of conversational booking experiences where consumers can come

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Speaker 3: and chat and book experience holiday experiences direct. So I

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Speaker 3: think this is what I see this as a job's shifting,

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Speaker 3: where skills are shifting, the types of roles are potentially shifting.

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Speaker 3: It's a recalibration across the enterprise.

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Speaker 1: I think recalibration is certainly fair to say Yasmin Ahma,

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Speaker 1: Managing Director Data Cloud at Google Cloud, Mandeep Singh, Global

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Speaker 1: Head of Technology Research at Bloomberg Intelligence. Both are here

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Speaker 1: in the Bloomberg Interactive Broker's studio. That just a taste

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Speaker 1: of what is to come on the Tech Disruptors podcast

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Speaker 1: with Mandeep Singh. For more insights from Mandy and the

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Speaker 1: entire Bloomberg Intelligence team, check out the Tech Disruptors podcast.

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Speaker 1: It features conversations with thought leaders and management teams on

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Speaker 1: disruptive trends in the tech world. It covers everything from

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Speaker 1: AI to EVS, to VR and beyond. You can find

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Speaker 1: it on Apple, Spotify, or anywhere you get your podcast