Microsoft’s Artificial Intelligence (AI) products are struggling to gain traction in the market, with many of its AI tools falling behind competitors like Google Gemini. The company has cut internal goals for its Azure AI products and is struggling to meet sales targets due to a lack of demand.
The situation is attributed to Microsoft’s inability to connect with customers and prioritize effectively. The company’s CEO, Satya Nadella, has been accused of chasing shareholder sentiment over delivering for customers or employees. This short-term focus may put the firm on the backfoot if AI actually delivers another computing paradigm shift.
In contrast, Google Gemini is actively gaining ground, with its Tensor server tech and dominating position in Android providing a strong foundation for growth. Microsoft’s reliance on NVIDIA technology for data centers and its tendency to cram half-baked AI features into products have also been cited as reasons for the company’s struggles.
The article cites research suggesting that agentic AI tools require human intervention at a frequency ratio that makes them cost ineffective, but Microsoft seems unbothered by this issue. The company is instead opting for a “ship it now fix it later” approach, which risks giving its AI products an Internet Explorer-like reputation for poor quality.
While some of Microsoft’s enterprise solutions for AI are seeing strong growth, the company’s future in AI may be at risk if it fails to deliver on promising initiatives. Shareholders will be happy to see Microsoft become a server reseller, but this would be an ignoble legacy for what was previously one of tech’s most innovative companies.
The article concludes that Microsoft needs to prioritize quality and focus on delivering home-grown innovation in the AI space, rather than relying on re-selling NVIDIA server tech. With Google Gemini ahead in the market, Microsoft must act quickly to regain ground and restore its position as a leader in AI development.
Source: https://www.windowscentral.com/artificial-intelligence/microsoft-has-a-problem-nobody-wants-to-buy-or-use-its-shoddy-ai