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Insight // Artificial Intelligence

Microsoft AI: New Team to Develop Low-Cost Conversational AI

Jan 24, 2024 3 min read HyScaler Team

Microsoft AI, the tech giant’s artificial intelligence division, is reportedly forming a new team to develop low-cost conversational AI that can run on less processing power than the current technology it is using from OpenAI.

Microsoft AI vs OpenAI: A New Rivalry?

The Information reported that Microsoft AI has moved some of its top developers from its research group to the new-Gen AI team, which is expected to be part of the Azure cloud unit. Misha Bilenko, a corporate vice president at Microsoft AI, could lead the new team.

Microsoft AI has been relying heavily on OpenAI, a research organization co-founded by Elon Musk, to develop its AI-based products. For instance, Microsoft’s Bing Chat, a chatbot that can answer questions and engage in conversations, is powered by the GPT-4 language model, a state-of-the-art natural language processing system developed by OpenAI. Similarly, Microsoft AI’s Bing AI Image Creator, a tool that can generate realistic images from text descriptions, uses the Dall-E 3 image generator, another cutting-edge AI system from OpenAI.

However, OpenAI’s technology is not cheap or easy to run. It requires massive amounts of computing power and data, which can be costly and environmentally unfriendly. Microsoft AI is reportedly looking for a more affordable and scalable alternative, which could give it an edge over OpenAI and other competitors in the AI field.

Microsoft’s Copilot: A Versatile AI Assistant

Microsoft AI

In addition to its collaboration with OpenAI, Microsoft AI has also been investing in its own AI assistant, Copilot, which offers a range of features and services to users. It recently launched its Copilot Pro subscription, which gives users access to Microsoft AI’s Office features, such as creating documents, spreadsheets, and presentations with AI assistance.

Copilot Pro gives users priority access to the latest language models from OpenAI, such as GPT-4 Turbo, which can generate faster and more accurate text. Moreover, Copilot Pro allows users to create their own custom version of Copilot, called Copilot GPT, which can be tailored to their specific needs and preferences. Copilot Pro also enhances the image quality of Bing AI Image Creator with more details and realism.

Microsoft AI has also introduced Copilot for Microsoft 365, which is designed for enterprise customers who want to leverage AI to improve their business productivity and efficiency. Copilot for Microsoft 365 is claimed to help businesses become AI-powered by providing them with AI solutions for various tasks and challenges. Microsoft AI has also announced the launch of the Copilot Android and iOS app, which enables users to access Copilot’s features and services on their mobile devices.

It now offers three variants of its Copilot AI assistant: the free version, which can function like any other chatbot, such as ChatGPT or Bard; the Copilot Pro subscription, which costs $20 per month; and the Copilot for Microsoft 365 subscription, which costs $30 per month.

A Leader in AI Innovation

Microsoft AI is clearly ramping up its efforts to develop and deliver innovative and affordable AI technology to its users and customers. With its new team to develop low-cost conversational AI, It is aiming to challenge OpenAI’s dominance in the AI field and offer a more accessible and scalable AI alternative.

It is not only focused on conversational AI but also on a wide range of AI-based products and services for various domains and applications. Some of the examples are Azure AI, Microsoft 365, Dynamics 365, Power Platform, Windows, Xbox, Microsoft Defender, and more. These products and services provide billions of intelligent experiences every day to users and customers. You can learn more about Microsoft AI’s approach and vision on their website.

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