Featured Article

Google goes all in on generative AI at Google Cloud Next

There was barely a mention of core cloud tech

Comment

Stage at Google Cloud Next with logo in Las Vegas, April, 2024.
Image Credits: Google

This week in Las Vegas, 30,000 folks came together to hear the latest and greatest from Google Cloud. What they heard was all generative AI, all the time. Google Cloud is first and foremost a cloud infrastructure and platform vendor. If you didn’t know that, you might have missed it in the onslaught of AI news.

Not to minimize what Google had on display, but much like Salesforce last year at its New York City traveling road show, the company failed to give all but a passing nod to its core business — except in the context of generative AI, of course.

Google announced a slew of AI enhancements designed to help customers take advantage of the Gemini large language model (LLM) and improve productivity across the platform. It’s a worthy goal, of course, and throughout the main keynote on Day 1 and the Developer Keynote the following day, Google peppered the announcements with a healthy number of demos to illustrate the power of these solutions.

But many seemed a little too simplistic, even taking into account they needed to be squeezed into a keynote with a limited amount of time. They relied mostly on examples inside the Google ecosystem, when almost every company has much of their data in repositories outside of Google.

Some of the examples actually felt like they could have been done without AI. During an e-commerce demo, for example, the presenter called the vendor to complete an online transaction. It was designed to show off the communications capabilities of a sales bot, but in reality, the step could have been easily completed by the buyer on the website.

That’s not to say that generative AI doesn’t have some powerful use cases, whether creating code, analyzing a corpus of content and being able to query it, or being able to ask questions of the log data to understand why a website went down. What’s more, the task and role-based agents the company introduced to help individual developers, creative folks, employees and others, have the potential to take advantage of generative AI in tangible ways.

But when it comes to building AI tools based on Google’s models, as opposed to consuming the ones Google and other vendors are building for its customers, I couldn’t help feeling that they were glossing over a lot of the obstacles that could stand in the way of a successful generative AI implementation. While they tried to make it sound easy, in reality, it’s a huge challenge to implement any advanced technology inside large organizations.

Big change ain’t easy

Much like other technological leaps over the last 15 years — whether mobile, cloud, containerization, marketing automation, you name it — it’s been delivered with lots of promises of potential gains. Yet these advancements each introduce their own level of complexity, and large companies move more cautiously than we imagine. AI feels like a much bigger lift than Google, or frankly any of the large vendors, is letting on.

What we’ve learned with these previous technology shifts is that they come with a lot of hype and lead to a ton of disillusionment. Even after a number of years, we’ve seen large companies that perhaps should be taking advantage of these advanced technologies still only dabbling or even sitting out altogether, years after they have been introduced.

There are lots of reasons companies may fail to take advantage of technological innovation, including organizational inertia; a brittle technology stack that makes it hard to adopt newer solutions; or a group of corporate naysayers shutting down even the most well-intentioned initiatives, whether legal, HR, IT or other groups that, for a variety of reasons, including internal politics, continue to just say no to substantive change.

Vineet Jain, CEO at Egnyte, a company that concentrates on storage, governance and security, sees two types of companies: those that have made a significant shift to the cloud already and that will have an easier time when it comes to adopting generative AI, and those that have been slow movers and will likely struggle.

He talks to plenty of companies that still have a majority of their tech on-prem and have a long way to go before they start thinking about how AI can help them. “We talk to many ‘late’ cloud adopters who have not started or are very early in their quest for digital transformation,” Jain told TechCrunch.

AI could force these companies to think hard about making a run at digital transformation, but they could struggle starting from so far behind, he said. “These companies will need to solve those problems first and then consume AI once they have a mature data security and governance model,” he said.

It was always the data

The big vendors like Google make implementing these solutions sound simple, but like all sophisticated technology, looking simple on the front end doesn’t necessarily mean it’s uncomplicated on the back end. As I heard often this week, when it comes to the data used to train Gemini and other large language models, it’s still a case of “garbage in, garbage out,” and that’s even more applicable when it comes to generative AI.

It starts with data. If you don’t have your data house in order, it’s going to be very difficult to get it into shape to train the LLMs on your use case. Kashif Rahamatullah, a Deloitte principal who is in charge of the Google Cloud practice at his firm, was mostly impressed by Google’s announcements this week, but still acknowledged that some companies that lack clean data will have problems implementing generative AI solutions. “These conversations can start with an AI conversation, but that quickly turns into: ‘I need to fix my data, and I need to get it clean, and I need to have it all in one place, or almost one place, before I start getting the true benefit out of generative AI,” Rahamatullah said.

From Google’s perspective, the company has built generative AI tools to more easily help data engineers build data pipelines to connect to data sources inside and outside of the Google ecosystem. “It’s really meant to speed up the data engineering teams, by automating many of the very labor-intensive tasks involved in moving data and getting it ready for these models,” Gerrit Kazmaier, vice president and general manager for database, data analytics and Looker at Google, told TechCrunch.

That should be helpful in connecting and cleaning data, especially in companies that are further along the digital transformation journey. But for those companies like the ones Jain referenced — those that haven’t taken meaningful steps toward digital transformation — it could present more difficulties, even with these tools Google has created.

All of that doesn’t even take into account that AI comes with its own set of challenges beyond pure implementation, whether it’s an app based on an existing model, or especially when trying to build a custom model, says Andy Thurai, an analyst at Constellation Research. “While implementing either solution, companies need to think about governance, liability, security, privacy, ethical and responsible use and compliance of such implementations,” Thurai said. And none of that is trivial.

Executives, IT pros, developers and others who went to GCN this week might have gone looking for what’s coming next from Google Cloud. But if they didn’t go looking for AI, or they are simply not ready as an organization, they may have come away from Sin City a little shell-shocked by Google’s full concentration on AI. It could be a long time before organizations lacking digital sophistication can take full advantage of these technologies, beyond the more-packaged solutions being offered by Google and other vendors.

More TechCrunch

Fisker is just a few days into its Chapter 11 bankruptcy, and the fight over its assets is already charged, with one lawyer claiming the startup has been liquidating assets…

The fight over Fisker’s assets is already heating up

A hacker is advertising customer data allegedly stolen from the Australia-based live events and ticketing company TEG on a well-known hacking forum. On Thursday, a hacker put up for sale…

Hacker claims to have 30 million customer records from Australian ticket seller giant TEG

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Elon…

Tesla makes Musk best-paid CEO of all time and Fisker bites the dust

Dot is a new AI companion and chatbot that thrives on getting to know your innermost thoughts and feelings.

Dot’s AI really, really wants to get to know you

The e-fuels startup is working on producing fuel for aviation and maritime shipping using carbon dioxide and other waste carbon streams.

E-fuels startup Aether Fuels is raising $34.3 million, per filing

Fisker was facing “potential financial distress” as early as last August, according to a new filing in its Chapter 11 bankruptcy proceeding, which the EV startup initiated earlier this week.…

Fisker faced financial distress as early as last August

Cruise, the self-driving subsidiary of General Motors, has agreed to pay a $112,500 fine for failing to provide full information about an accident involving one of its robotaxis last year.…

Cruise clears key hurdle to getting robotaxis back on roads in California

Feel Therapeutics has a pretty original deck, with some twists we rarely see; the company did a great job telling the overall story.

Pitch Deck Teardown: Feel Therapeutics’ $3.5M seed deck

The Rockset buy fits into OpenAI’s broader recent strategy of investing heavily in its enterprise sales and tech orgs.

OpenAI buys Rockset to bolster its enterprise AI

The U.S. government announced sanctions against 12 executives and senior leaders of the Russia-based cybersecurity giant Kaspersky. In a press release, the Department of the Treasury’s Office of Foreign Assets…

US government sanctions Kaspersky executives

Style DNA, an AI-powered fashion stylist app, creates a personalized style profile from a single selfie. The app is particularly useful for people interested in seasonal color analysis, a process…

Style DNA gets a generative AI chatbot that suggests outfit ideas based on your color type

Rates of depression, anxiety and suicidal thoughts are surging among U.S. teens. A recent report from the Center of Disease Control found that nearly one in three girls have seriously…

Khosla-backed Marble, built by former Headway founders, offers affordable group therapy for teens

Cover says what sets it apart is the underlying technology it employs, which has been exclusively licensed from NASA’s Jet Propulsion Laboratory.

A new startup from Figure’s founder is licensing NASA tech in a bid to curb school shootings

Spotify is introducing a new “Basic” streaming plan in the United States, the company announced on Friday. The new plan costs $10.99 per month and includes all of the benefits…

Spotify launches a new Basic streaming plan in the US

Photographers say the social media giant is applying a ‘Made with AI’ label to photos they took, causing confusion for users.

Meta is tagging real photos as ‘Made with AI,’ say photographers

Website building platform Squarespace is selling Tock, its restaurant reservation service, to American Express in a deal worth $400 million — the exact figure that Squarespace paid for the service…

Squarespace sells restaurant reservation system Tock to American Express for $400M

Featured Article

Change Healthcare confirms ransomware hackers stole medical records on a ‘substantial proportion’ of Americans

The February ransomware attack on UHG-owned Change Healthcare stands as one of the largest-ever known digital thefts of U.S. medical records.

12 hours ago
Change Healthcare confirms ransomware hackers stole medical records on a ‘substantial proportion’ of Americans

Google said today that it globally paused its experiment that aimed to allow new kinds of real-money games on the Play Store, citing the challenges that come with the lack…

Google pauses its experiment to expand real-money games on the Play Store

Venture firms raised $9.3 billion in Q1 according to PitchBook data, which means this year likely won’t match or surpass 2023’s $81.8 billion total. While emerging managers are feeling the…

Kevin Hartz’s A* raises its second oversubscribed fund in three years

Google is making reviews of all your movies, TV shows, books, albums and games visible under one profile page starting June 24, according to an email sent to users last…

Google is making your movie and TV reviews visible under a new profile page

Zepto, an Indian quick commerce startup, has more than doubled its valuation to $3.6 billion in a new funding round of $665 million.

Zepto, a 10-minute delivery app, raises $665M at $3.6B valuation

Speak, the AI-powered language learning app, has raised new money from investors at double its previous valuation.

Language learning app Speak nets $20M, doubles valuation

SpaceX unveiled Starlink Mini, a more portable version of its satellite internet product that is small enough to fit inside a backpack.  Early Starlink customers were invited to purchase the…

SpaceX debuts portable Starlink Mini for $599

Ali Rathod-Papier has stepped down from her role as global head of compliance at corporate card expense management startup Brex to join venture firm Andreessen Horowitz (a16z) as a partner…

Brex’s compliance head has left the fintech startup to join Andreessen Horowitz as a partner

U.S. officials imposed the “first of its kind” ban arguing that Kaspersky threatens U.S. national security because of its links to Russia.

US bans sale of Kaspersky software citing security risk from Russia 

Apple has released Final Cut Pro for iPad 2 and Final Cut Camera, the company announced on Thursday. Both apps were previously announced during the company’s iPad event in May.…

Apple releases Final Cut Pro for iPad 2 and Final Cut Camera

Paris has quickly established itself as a major European center for AI startups, and now another big deal is in the works.

Poolside is raising $400M+ at a $2B valuation to build a supercharged coding co-pilot

The space industry is all abuzz about how SpaceX’s Starship, Blue Origin’s New Glenn, and other heavy-lift rockets will change just about everything. One likely consequence is that spacecraft will…

Gravitics prepares a testing gauntlet for a new generation of giant spacecraft

LTK (formerly LiketoKnow.it and RewardStyle), the influencer shopping app with 40 million monthly users, announced on Thursday the launch of a free direct message tool for creators to instantly share…

Influencer shopping app LTK gets an automatic direct message tool

YouTube appears to be taking a firm stance against Premium subscribers who attempt to use a VPN (virtual private network) to access cheaper subscription prices in other countries. This week,…

YouTube confirms crackdown on VPN users accessing cheaper Premium plans