Is Microsoft the safe bet for AI in your company?

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Today’s Thoughts ☠️

Hey there 👋,

Something a bit different this week, folks.

More tech, not as much L&D. From time to time it’s worth looking out across the tech world to understand how we make smart choices in L&D.

I’m continually asked “What AI tool should I use for work?”.

For 99% of us who work for an employer, we don’t get much choice in this. It’s made for us and we have to do our best with the tools we’re given. I’d bet the majority of you sit in a Microsoft powered tech ecosystem.

So, you’re probably using, or going to be using, Copilot or ChatGPT (which MS has a 49% ownership stake in).

That leads me to today’s conversation.

If you’re scouting for a catch-all AI partner who is well-known, stable and will be around a decade from now, you want Microsoft.

Today, we’ll explore, is Microsoft the safe bet for AI in your company?

Get your tea or beverage of choice ready, 🍵.

We've got lots to discuss!

👀 In today’s chat:

  • The smart choice for AI at work

  • 10 AI and tech questions you need to ask vendors

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THE BIG THOUGHT
Why Microsoft is (Probably) The Best Choice For Your Go-To Business AI Partner

An offer you can’t refuse

While I’ve never believed in a single company dominating an entire sector, I can’t help but think Microsoft is close to this in the age of Gen AI.

The dominance of Microsoft in the growing AI space first struck me from a financial standpoint.

In my weekly listen of the ever-compelling Prof G Markets show, co-host and analyst Ed Elson made a compelling point about how many AI companies are interconnected and reliant on big tech. Behind the scenes, the best talent is either already owned by big tech or being acquired by it.

The best example of this today is Microsoft.

To be clear, I’m not saying this is bad. I like Microsoft and their products. They’re part of many company's tech ecosystems. The question I want to answer is:

In the AI arms race, who should we partner with as a stable long-term AI tech partner?

My answer = Microsoft.

The Common AI Fears

Common fears around integrating Generative AI tools into the corporate tech ecosystem include:

  • Privacy and security

  • Data access and handling

  • Model training

  • Unknown providers

All of these can be answered by Microsoft.

No, I’m not a sales rep, I just see the approach that makes sense for most organisations.

Microsoft service millions of companies infrastructure today (maybe even yours). They know how to make tech successful in all sizes of organisations. This is an advantage with new AI tech.

These fears are precisely why Microsoft stands out as the long-term partner for AI adoption.

We all know the brand name.

This alone instils some level of comfort and confidence. It’s hard to convince your company to buy a tool from ‘so and so’ new unproven company for something so sensitive as Generative AI.

So, Microsoft has a few things going for it:

  1. Brand familiarity

  2. Proven corporate-level infrastructure and support

  3. The biggest owner of AI talent and tech in the industry

Plus, for those who are locked into the MS ecosystem, new AI capabilities extend across all your apps. That will include everything from teams to Viva learning.

Let’s explore that third one in more detail because it’s incredibly important.

The AI Arms Race: Microsoft’s Dominance

Is a game fair if one player is so dominant the others can’t compete?

This is somewhat happening in the AI space.

You probably won’t be aware of all the moves and acquisitions Microsoft has made in this space. Unless you’re a super nerd like me, consuming all this tech gossip. The TL;DR is they’ve made smart acquisitions and investments that position them as the industry's puppet master, quietly shaping the future of AI.

Here’s a view of Microsoft’s activity in the last 5 years:

2019:

  • Invested $1 billion in OpenAI, forming a partnership to develop AI technologies.

  • Launched Azure Cognitive Services, providing pre-built AI models for developers.

2020:

  • Acquired Softomotive, a robotic process automation (RPA) company, to enhance Power Automate.

  • Introduced Azure Arc, enabling AI and machine learning workloads across hybrid environments.

2021:

  • Acquired Nuance Communications for $19.7 billion, enhancing AI capabilities in healthcare and enterprise AI.

  • Launched Azure Percept, a platform for creating AI-powered edge devices.

2022:

  • Expanded partnership with OpenAI, integrating GPT-3 into various Microsoft products.

  • Introduced GitHub Copilot, an AI-powered code companion.

2023:

  • Launched Bing Chat (later renamed Copilot), integrating OpenAI's ChatGPT into Bing search.

  • Introduced Copilot for Microsoft 365, bringing AI assistance to Office applications.

  • Invested an additional estimated $10 billion in OpenAI.

2024:

  • Continued expansion of Copilot across various Microsoft products and services.

  • Made a significant investment in Inflection AI, paying $620 million for non-exclusive licensing of their AI model and an additional $33 million for hiring key talent, including co-founders Mustafa Suleyman and Karén Simonyan.

Yes, this all sounds fancy.

What it means for your company is long-term potential. Something which a lot of other AI-powered tools and companies can’t offer. As Scott Galloway put it in a recent podcast episode “Microsoft and OpenAI are running away with it”.

At some point, we’ll experience an AI company culling. I know that sounds aggressive but 90% of what’s on the market will disappear, and we’ll be left with what’s best. In this case, it’s Microsoft, and OpenAI by association since they share tech.

I don’t want to just leave you with my view alone.

What the market says

Earlier, I mentioned the spark for this piece came from Ed Elson, the Prof G Markets podcast co-host and analyst. So, I reached out on LinkedIn to ask him:

“Given Microsoft's investments and acquisitions in AI, do you foresee a significant reduction in the number of independent AI companies in the next few years, and could this establish Microsoft as the go-to AI provider for corporates vs the likes of Google and Amazon?”

Yes, and we’re already seeing a reduction. Inflection was a leading AI startup until the co-founders jumped ship to work for their lead investor, Microsoft. OpenAI is not independent either — it owes 49% of its profits to Microsoft. We’re witnessing an evolution of the monopoly model, from “monopoly by acquisition” to “monopoly by investment.” Big Tech gets all the benefits of buying out the competition, just without the regulation.

Ed Elson, Podcast Co-Host & Analyst | Prof G Markets

Of course, a bigger conversation (and far out of this humans field) is what all this means for competition and regulations with such monopoly. I will delegate to the more informed in the world to tackle that one.

This post is not intended to answer “What’s the best AI tool?” it’s “Where is the best combination of AI tech, talent and the infrastructure for long-term partnership?”

Again, Microsoft.

If you control the majority of tech and talent plus a trusted brand, you win.

📝 Final thoughts

If you’re a company that wants to explore AI tech, look at Microsoft.

You’re likely already using its products. Their flagship product, Copilot, is baked into all the popular MS tools you use every day. Plus, you get access to build even more AI-powered tools with Azure and Copilot Studio.

As with anything in life, context is key.

If you want security, industry-leading tools and a proven track record, this is your best bet.

🤔 Zero-cost resources for Copilot users

As I’ve mentioned, I know a lot of you will be in Microsoft technology ecosystems, and as such, Copilot is likely your large language model (LLM) of choice.

Here’s some of the best stuff to help you leverage this tool:

Till next time, you stay classy learning friend!

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SMART THOUGHTS

🤔  Don’t fall into the workaholism trap

Not something I’d usually share.

This caught my eye from Harvard Business Review while doom-scrolling. It explores the depths of addiction any of us can suffer in the odd world of work.

You might think you’re addicted to work, or is it really something else?

💡 The 10 AI + Tech questions you should be asking suppliers

It seems like some vendors are trying to pull the wool over the eyes of learning tech buyers.

The frantic rise of Gen AI is giving rise to sales people dropping some of the most ridiculous BS I’ve ever heard. I want to help you navigate this minefield.

The reality is not everything is or should be AI powered, and wether that ‘AI’ is even useful for you and your users needs to be explored. Be smart and save these somewhere.

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