But Sales Growth Remains Slow
Microsoft and Google's Q2 results show slow sales growth despite their promises of AI investment and the launch of generative AI products. The companies have emphasized the potential of AI, particularly in natural language processing, to usher in a new era of computing.
- Both Microsoft and Alphabet have acknowledged that AI is having a positive impact on sales, but they have not indicated when they will report the financial results from these technologies
- Alphabet CEO Sundar Pichai said that there is "lots more to come" after the launch of Bard, Google's answer to Microsoft's ChatGPT-powered search chatbot Bing
- Google has also introduced several AI tools for its email, collaboration, and cloud software
Despite this, it may take some time to see significant financial results from AI, as it took Google a long time to break out the numbers for YouTube. Microsoft's head of investor relations, Brett Iversen, added that AI is still a relatively small part of the company's overall business.
Microsoft's AI "Copilot" Tool Gains Over 10,000 Organizations
Microsoft CEO Satya Nadella stated that over 10,000 organizations, including Coca-Cola and General Motors, have signed up for the new AI "Copilot" developer tool that Microsoft made available to its product suite that includes Word, Excel, and Outlook.
- Microsoft's revenue and profit for the quarter exceeded expectations, driven by growth in its cloud computing and Office productivity software businesses
- Bing's daily users have increased to 100 million after the addition of AI features, but some analysts believe AI advances may have a bigger impact on Microsoft's enterprise software rather than search
Meta Platforms and Amazon are also focusing on AI, with Meta developing an AI model that can identify individual objects within an image and Amazon releasing AI-backed chatbot technologies to help other companies develop their own.
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