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The Morning Download: Etsy Crafts Machine-Learning Solution With Google Cloud
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Good day, CIOs. Powering the self-described online marketplace for all things "handcrafted, vintage, custom or unique" is machine-learning technology from a big tech vendor. CIO Journal's Sara Castellanos recently met with Etsy Inc. CTO Mike Fisher to learn how the Brooklyn-based online marketplace is working with Alphabet Inc.'s Google Cloud to juice sales.
When every product is one-of-a-kind... Getting search right requires a lot of computing power, best accessed from the cloud, Mr. Fisher explains. At Etsy, machine-learning algorithms are used to serve up relevant products that match a customer’s search terms in a process called “context-specific ranking.” More than 80% of search-based purchases come from the first page of results, according to the company.
Cloud boosts experimentation. Etsy, which in 2017 signed a five-year deal with Google Cloud, can now run several different search experiments in the cloud, with more data to inform the algorithms. The experiments often include A/B tests, which compare different algorithms to see which ones unearth the most relevant products in a test. The number of experiments, including those in search, reached a record during the quarter ended March 31.
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McDonald's global CIO Daniel Henry says technology can speed up drive-through service. PHOTO: TAYLOR GLASCOCK FOR THE WALL STREET JOURNAL
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McDonald’s strategy to transform mobile ordering. McDonald’s Corp. in March announced it would spend more than $300 million to purchase Dynamic Yield Ltd., a technology startup that specializes in helping companies personalize their sales pitch to consumers. The WSJ's Micah Maidenberg talked with Daniel Henry, the company’s global chief information officer, about how technology is changing the customer experience.
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Q:
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Why does McDonald’s think it needs to do this?
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Our customers are telling us this is an expectation they have, because this is the environment they’re dealing with in everyday life. As you do shopping online, as you interact with airlines—in every facet of our lives, it’s getting to be more of a personalized experience.
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Q:
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Is the expectation that more personalization will drive higher sales?
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It’s a business growth driver, for sure. But it’s also about being more convenient for our customers. It’s about simplifying technology for the crew. It’s a holistic experience. Driving growth is one of them, but also driving that customer experience. As you see repeat customers and offer up different items, can you have a larger average check?
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When Amazon not only provides your on-demand videos, toiletries and home furnishings but also the cloud service your doctor uses to analyze your medical records, you might think twice about buying that pint of gelato at Whole Foods.
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Analysis by Christopher Mims
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MIT Media Lab’s Blakeley H. Payne developed a curriculum to teach school children about artificial intelligence. PHOTO: M. SCOTT BRAUER FOR THE WALL STREET JOURNAL
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Q:
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How do you teach AI concepts—which even adults have trouble understanding—to children?
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I think kids struggle to recognize that it’s not something like a pet. You have to integrate the ethics piece at every point, because you never want to fall into the trap of presenting an AI system as like a mathematical equation, with the authority of a mathematical equation.
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The lawsuit over Apple's domination of iPhone apps threatens its slice of billions of dollars in software sales. PHOTO: PATRICK SEMANSKY/ASSOCIATED PRESS
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Apple loses bid to end app antitrust case in Supreme Court. Consumers can sue Apple Inc. for forcing them to buy apps exclusively from the tech giant, the Supreme Court ruled Monday, threatening billions of dollars in revenue that the company is counting on to make up for slowing iPhone sales. The WSJ has more.
Oracle firings draw China protests. Oracle Corp.'s decision to "optimize" its workforce at a Beijing R&D facility, eliminating 900 jobs, has drawn protests there, with some employees suspecting a political motivation. “We think the real reason is to do with the U.S.-China trade war," one engineer tells the FT. Oracle didn't comment on its China strategy.
Amazon, in need of drivers, turns to employees. Amazon.com Inc. says it will give its existing employees $10,000 and three months of pay if they quit to start delivery firms, the WSJ reports.
Microsoft builds out in Africa. Bloomberg reports that Microsoft Corp. will spend $100 million over the next five years on development centers in Africa. The first two sites, in Nairobi and Lagos, will host 500 developers by 2023.
Facebook's WhatsApp hit by spyware. Facebook Inc.'s WhatsApp, one of the most popular messaging tools in the world, is urging its 1.5 billion users to upgrade to the latest version over a report of a spyware attack. Reuters reports that a vulnerability allowed attackers to inject spyware on phones.
School lunch hacked. The CFO of one San Francisco Bay Area school lunch company was arrested on two felony counts last month for stealing student data from the website of another. The San Francisco Chronicle reports that Keith Wesley Cosbey is accused of accessing information about hundreds of students, including names and meal preferences.
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Everything Else You Need to Know
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European stocks climbed after a downbeat session in Asia, as investors awaited a resolution to the U.S.-China trade negotiations following the recent escalation in tensions. (WSJ)
Bayer AG faced a significant courtroom defeat from a lawsuit alleging Roundup weedkiller led to cancer, with a California jury awarding a couple $2.055 billion in damages. (WSJ)
Boeing Co.’s grounded 737 MAX planes were expected to fly again well before the end of the summer travel season. Now their return appears unlikely before mid- to late August, causing more problems for airlines. (WSJ)
The number of U.S. measles cases has reached 839 in 23 states, as outbreaks in parts of the country showed no sign of slowing.
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