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Microsoft's (MSFT) AI Offerings Target Enterprise Applications

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Microsoft (MSFT - Free Report) recently launched Microsoft Dynamics 365 Copilot. This is a copilot in CRM and ERP that helps in bringing next generation Artificial Intelligence (AI) to every business line.

Dynamics 365 Copilot helps in empowering workers with AI tools built for marketing, sales, operations, services and supply chain roles. It also uses generative AI to automate monotonous task and encourage creativity of the workforce.

Microsoft earlier launched AI in its search engine to compete with Alphabet’s (GOOGL - Free Report) Google and now with its latest AI technology targeting corporate applications, MSFT is competing with rivals like Oracle Corp (ORCL - Free Report) , Salesforce (CRM - Free Report) and SAP SE.

Copilot in Viva Sales and Microsoft Dynamics 365 Sales not only help sellers curate mail responses to customers but also can create an email summary of a Teams meeting in Outlook.

Copilot in Dynamics 365 Marketing and Dynamics 365 Customer Insights helps marketers smoothen the process of data exploration, audience segmentation and content creation. They can also create fresh email campaign content.

Management believes that this AI will proactively identify external issues like weather, geography and financials that may impact the supply chain process.  

Microsoft is set to announce the next set of AI related to workplace productivity on Mar 16.

Microsoft’s Recent Advancements in Artificial Intelligence

This Zacks Rank #3 (Hold) company is actively investing in developing AI, which management believes will reap profits in the long term.

Shares of Microsoft have decreased 7.9% in the past year compared with the Zacks Computer and Technology sector’s decline of 10.2% in the same period.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In February, Microsoft announced a premium teams messaging offering powered by ChatGPT. The company has already received a great response from the Silicon Valley for the same.

This service will be priced at $7 per month in June and the price will be increased to $10 per month from July. This AI chatbot will simplify meetings by recommending tasks, generating automatic meeting notes and help create meeting templates.  

Last month, Microsoft announced a multi-million investment in Open AI. The company aims to integrate ChatGPT’s technology into all its products.

In November, Microsoft announced the Microsoft Supply Chain platform. This platform helps organizations maximise their supply chain data estate investment. This is made possible by collaborating Microsoft AI, low-code, security and SaaS applications in one platform.
 
Microsoft also announced the preview of a Microsoft Supply Chain Center. It is a ready-made supply chain center for supply chain visibility and transformation.

The Supply Chain Center has customizable as well as pre-built modules. Some of the pre-built modules are supply and demand insights module, order management module, partner modules and many more. This is a huge step toward redesigning supply chain by increasing efficiency and agility for the customers.

As of Dec 31, 2022, Microsoft had total cash, cash equivalents and short-term investments balance of $99.5 billion. The long-term debt was $44 billion. The strong cash balance provides Microsoft with the chance to invest in growth opportunities like AI.

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