WEBVTT - ICYMI: Google Cloud Aiming Higher

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. You're listening to Bloomberg

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

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<v Speaker 1>Alphabet Shares, the parent company of Google, hitting a new

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<v Speaker 1>all time high today. You'll remember that last month the

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<v Speaker 1>company reported Google Cloud revenue and operating income topped analysts projections.

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<v Speaker 1>Our own Bloomberg Intelligence is Mandeep sing writing after earnings

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<v Speaker 1>that Google's increase capex you buy ten billion dollars for

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<v Speaker 1>the full year suggests cloud segment growth is likely to

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<v Speaker 1>remain above thirty percent through the second half of the year.

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<v Speaker 1>We've got with us a man Deep Singh's Global head

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<v Speaker 1>of Technology Research at Bloomberg Intelligence, also joining us Yasmin Ahmed,

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<v Speaker 1>Managing Director of Data Cloud at Google Cloud. Both of

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<v Speaker 1>them join us here in the Bloomberg Interactive Broker Studio.

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<v Speaker 1>I should note Yasmin will be featured on an upcoming

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<v Speaker 1>episode of the Tech Disruptors podcast with man Deep Seing.

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<v Speaker 1>Be sure to check that out where you get your podcasts.

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<v Speaker 1>I want to actually start with you, Man Deep, and

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<v Speaker 1>just set the scene for us a little bit about

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<v Speaker 1>why you want to speak to someone like Yasmine on

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

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<v Speaker 1>the way she is and so she can hear you.

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<v Speaker 2>I thank you for the shout out on the tech

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<v Speaker 2>Test Disruptors episode. Look, Google Cloud, I mean, if it

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<v Speaker 2>was a separate company, you know, fifty billion dollar rund

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<v Speaker 2>rate segment growing at over thirty percent, just think about it,

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<v Speaker 2>they could exceed you know, one hundred billion dollars in

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<v Speaker 2>revenue over the next two three years. So clearly there

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<v Speaker 2>is a lot of exciting things that are going on.

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<v Speaker 2>And talking to Yasmin, it was pretty obvious that, you know,

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<v Speaker 2>they have a lot of products at the database level

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<v Speaker 2>that are doing very well when it comes to AI

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<v Speaker 2>agents and just how companies are looking at deploying generative AI.

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

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<v Speaker 1>in to the conversation and talk a little bit about

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<v Speaker 1>what Mandeep was saying when it comes to the AI

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<v Speaker 1>agents and how they're utilizing Google Cloud right now.

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<v Speaker 3>So AI agents are transforming for our customers their business

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<v Speaker 3>as they deploy. Now, these highly sophisticated agents that can

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<v Speaker 3>optimize entire supply chains, that can transform how customer experience looks.

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<v Speaker 3>If you take Wayfair for example, they're doing visual search,

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<v Speaker 3>so as a customer, you can upload a picture. That

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<v Speaker 3>picture is used to find similar products in the catalog

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<v Speaker 3>and bring those back. So Wayfair are seeing a fifteen

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<v Speaker 3>percent improvement in conversion from that kind of visual search.

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<v Speaker 3>That's why you see customers looking at how can we

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<v Speaker 3>deploy more of these agents and new AI apps across

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<v Speaker 3>the enterprise. So how has Jenny I also impacting the

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<v Speaker 3>work for data scientists and data developers On that end,

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<v Speaker 3>we see huge impact. I'll actually go back to my

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<v Speaker 3>experience when I first came out of university. I was

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<v Speaker 3>a software engineer and I got given all of the

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<v Speaker 3>mundane tasks refactoring the TECHTA, writing code, lambs, code tests,

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<v Speaker 3>and it felt like a penance you had to pay. Well,

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<v Speaker 3>with code agents and data engineering agents and data science agents,

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<v Speaker 3>we can take all of that mundane task away and

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<v Speaker 3>allow developers, data scientists, data engineers to actually focus on

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<v Speaker 3>solving business problems. In fact, Honeywell have said the use

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<v Speaker 3>of these coding agents from Google have enabled their developers

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<v Speaker 3>to operate seventy percent faster, so huge amounts of efficiency gain,

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<v Speaker 3>but also just an elevated role.

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<v Speaker 2>For these humans, So yes, Ben, can I jump in there?

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<v Speaker 2>So what do you think customers are replacing here? Given

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<v Speaker 2>you know, I mean all these sounds great, but if

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<v Speaker 2>you're an enterprise, you have to find budgets to you know,

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<v Speaker 2>deploy all this at scale, and generative AI, as we know,

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<v Speaker 2>is quite expensive. So what is it that they are

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<v Speaker 2>displacing to invest in generative AI?

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<v Speaker 3>I think generatively I is not just about augmenting now

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<v Speaker 3>new technology and bolting on more costs. In fact, the

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<v Speaker 3>most transformative use cases actually get to the heart of

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<v Speaker 3>a business and rewire the way work gets done. So

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<v Speaker 3>if we look at some of our customers and use cases.

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

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<v Speaker 3>They've now deployed a networking agent that is actually scanning

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<v Speaker 3>all of the network signals, identifying potential issues in the future,

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<v Speaker 3>and creating service now tickets three weeks ahead of a

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<v Speaker 3>network issue actually happening. This is rewiring how an organization

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<v Speaker 3>works and it helps them avoid future cost future complexity

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<v Speaker 3>that they would have to deal with.

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<v Speaker 2>So you are convinced on the ROI of this, Jenny,

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<v Speaker 2>I spend that we debate every day whether there is enough.

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<v Speaker 1>This is the question we always ask you about.

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<v Speaker 2>Right, because she interfaces with the customers day in and

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<v Speaker 2>day out. Do you convince on that.

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<v Speaker 3>I am convinced because I heard the stories from our customers.

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<v Speaker 3>But also recently we published a blog six hundred plus

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<v Speaker 3>use cases from our customer ecosystem tangible use cases delivering

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<v Speaker 3>ROI and value. However, I also recognize many organizations are

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<v Speaker 3>super anxious. There's a lot of anxiety around the spend

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<v Speaker 3>of on Jenny I about how to get to that ROI.

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<v Speaker 3>The customers I see succeeding and moving the fastest are

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<v Speaker 3>those that are getting out into pilots and trying things out,

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<v Speaker 3>finding the low hanging fruit, and then building on topic.

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<v Speaker 2>Agents are not hallucinating for the customers that you have deployed.

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<v Speaker 3>Well, Hallucination a huge concern for CIOs as they deploy

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<v Speaker 3>this technology. But this is one of the core challenges

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<v Speaker 3>we recognize two years so go at Google. So when

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<v Speaker 3>we built AI into our data cloud, that's actually one

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<v Speaker 3>of the first challenges we set out to solve. Is

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<v Speaker 3>AI must be grounded in business context and business data,

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<v Speaker 3>i e. If it can't find the answer from the

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<v Speaker 3>business data it can't hallucinate, It actually needs to ask

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<v Speaker 3>you a question back and disambiguing. So solving for trust

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<v Speaker 3>and AI has been a core part of the data

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<v Speaker 3>and a cloud strategy.

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<v Speaker 1>You mentioned anxiety around hallucinations, but there's also anxiety around

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<v Speaker 1>job displacement as a result of this technology. I hosted

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<v Speaker 1>a dinner in Atlanta at an event that we did recently,

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<v Speaker 1>Bloomberg Business Value of AI Event, and by far the

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<v Speaker 1>topic that dominated the conversation was like, what is the

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<v Speaker 1>labor landscape going to look like in the coming years

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<v Speaker 1>as these agents displace workers even more so than they

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<v Speaker 1>have now, how do you think about that?

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<v Speaker 3>Being part of Google, we're one hundred and eighty thousand

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<v Speaker 3>calls leagues across the globe, we actually get to see

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<v Speaker 3>those dynamics playing out. So on one hand, we have engineers.

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<v Speaker 3>Even at Google, we're seeing thirty to forty percent of

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<v Speaker 3>our code now being written by Gemini.

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<v Speaker 1>Yeah, so the entry level coders aren't needed anymore.

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<v Speaker 3>So we don't need to hire as many developers as

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<v Speaker 3>we potentially historically had to do to ramp up to

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<v Speaker 3>where the business is growing. However, on the other hand,

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<v Speaker 3>AI has a transformational impact on business outcomes. So IHD

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<v Speaker 3>the Hotels Group, they're actually hiring developers to build the

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<v Speaker 3>next generation of conversational booking experiences where consumers can come

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<v Speaker 3>and chat and book experience holiday experiences direct. So I

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<v Speaker 3>think this is what I see this as a job's shifting,

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<v Speaker 3>where skills are shifting, the types of roles are potentially shifting.

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<v Speaker 3>It's a recalibration across the enterprise.

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<v Speaker 1>I think recalibration is certainly fair to say Yasmin Ahma,

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<v Speaker 1>Managing Director Data Cloud at Google Cloud, Mandeep Singh, Global

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<v Speaker 1>Head of Technology Research at Bloomberg Intelligence. Both are here

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<v Speaker 1>in the Bloomberg Interactive Broker's studio. That just a taste

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<v Speaker 1>of what is to come on the Tech Disruptors podcast

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<v Speaker 1>with Mandeep Singh. For more insights from Mandy and the

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<v Speaker 1>entire Bloomberg Intelligence team, check out the Tech Disruptors podcast.

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<v Speaker 1>It features conversations with thought leaders and management teams on

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<v Speaker 1>disruptive trends in the tech world. It covers everything from

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<v Speaker 1>AI to EVS, to VR and beyond. You can find

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<v Speaker 1>it on Apple, Spotify, or anywhere you get your podcast