microsoft and artificial intelligence ai

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UNIVERSITY OF ECONOMICS AND LAW FACULTY OF ACCOUNTING AND AUDITING

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GROUP 1 FINAL PROJECT REPORT

NEW INFORMATION COMMUNICATION TECHNOLOGY (E)

MICROSOFT AND

ARTIFICIAL INTELLIGENCE (AD)

Supervisor: Ph.D Nguyen Thi Thuy Hanh

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TABLE OF CONTENTS TABLE OF CONNTIENNÏTS HH TH TH TH HH TH TH T000 00816 2 TABLE OE FIGUIRES TT HH HH HH HH KH HH 3 CHAPTER I: BRIEEF INTRODUCTION OE MICROSOET << 4 1.1 InfroducfiOn <5 «sọ họ Họ họ th HH Họ hp ng ng 98 4 1.2 Hisfory co Q0 HH HT Họ Họ HH TH TH T0 018008 0900904 4 1.3 SWOT analysis of IMICTOSOÍC Go nọ TH HH HH ng 6 1.3.1 Strengths .Ô " e 7 00 5 7 1.3.4 — Thireafs Ă Ăn TH ng T00 10040191818 4 8 CHAPTER II: APPLICATIONS OF ARTIFICIAL INTELLIGENCE (AD) IN MICROSOIET In HH TH HH HH TH KH HH HT TH T0 0000018 16 9

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Figure 1.1

TABLE OF FIGURES

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CHAPTER I: BRIEF INTRODUCTION OF MICROSOFT 1.1 Introduction

Figure 1.1 Microsoft

Microsoft is an American multinational corporation that develops, manufactures, copyrights software and supports a wide range of computer-related products and services Currently, Microsoft’s software products are used by 90% of personal computers worldwide Besides, Microsoft became a pioneer in the personal computer revolution Thanks to that, it has given business the opportunity to expand into the world market with market share always in the leading position

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November 15”, 2001 Xbox was released by Microsoft It is one of the company’s most successful product lines to date and one of the top three video game systems available January 30", 2007 Microsoft introduced the 2007 Microsoft Office System and Windows Vista to global consumers June 3", 2009 Microsoft introduced the Bing search engine October 22", 2009 physical location in Scottsdale, Arizona Microsoft released Windows 7 and established its first June 15", 2010 Microsoft released Office 2010 June 28", 2011 Office 365 was released by Microsoft January 29", 2013 Microsoft released Office 365 and Office 2013 February 18", 2013 Microsoft introduced Outlook.com October 17", 2013 Windows 8.1 was released by Microsoft February 4", 2014 Microsoft has named Satya Nadella as its CEO July 29", 2015 Microsoft introduced Windows 10 September 22" 2015 Microsoft introduced Office 2016 October 18", 2016 recognition equality with humans Microsoft researchers obtained conversational speech May 2™, 2017 Microsoft unveiled new educational technology, such as Windows 10S, a new Surface laptop, and Microsoft Teams for classroom use October 2"4, 2019 Microsoft unveiled five new Surface products for late 2012 in addition to the Surface Neo and Surface Duo dual-screen devices that will be available in late 2020 May 6", 2020 Surface Go 2, Surface Book 3, Surface Headphones 2, and Surface Earbuds were all new from Microsoft June 24", 2021 Microsoft unveiled Windows 11 July 14", 2021 Microsoft introduced Windows 365 October 12", 2022 Surface Pro 9, Surface Laptop 5, and Surface Studio 2+ Microsoft launched Microsoft Designer and Image Creator, January 18", 2023 Microsoft and OpenAI expanded their collaboration February 7", 2023

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1.3.1 Strengths

Top software firm: Microsoft is without a doubt the industry leader in software technolo „ ° biggest Windows OS developer in the world as well as the top cloud player Via Office 365, Dynamics 365, and Azure, it provides paid cloud services

The biggest corporation in the world: As of October 2003, Microsoft has a market value of $2.46 trillion, making it the second largest company in the world

Broad market coverage: Microsoft has operations in over 190 nations globally Following the release of the heavily marketed version of Windows 10, it aimed for one billion active monthly users before Windows 11 took its place in 2021

Continuous expansion: Microsoft’s most recent financial results show how rapidly the cloud business is expanding In fiscal year 2022, the company reported a 17.96% increase in revenue year over year to $198.3 billion and a 19.26% increase in operating income year over year to $83.4 billion

Including more recent Stock Keeping Units (SKUs): Microsoft’s brand portfolio now includes more recent SKUs This includes Microsoft 365, which combines Windows 10 and Office 365 The Microsoft 365 company 1s worth billions of dollars

Reputable company with exceptional client loyalty: In 2022, Microsoft had 345 million commercial Office 365 users and 1.2 billion Office users It has, without a doubt, the most amazing and devoted clientele Consumers stick with a brand because they believe in it

1.3.2 Weaknesses

Excessive consumption in the PC industry: PC shipments frequently experience constant declines as a result of nsing vendor prices and exchange rate fluctuations It has put Microsoft in an untenable circumstance

Cybercrime theft: Microsoft is now at risk due to the rise in cybercrime cases There have reportedly been multiple hacker attacks against the Windows operating system’s cybersecurity

A lack of creativity: Microsoft needs to increase the sales of its hardware products, which include phones and Surface Pro computers In terms of mnovation and cutting edge technology, it has to catch up to Apple, Google, and Amazon, who are setting the pace very rapidly

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Internet Explorer and Edge, while Google and Safari have been gaining market share in the Internet browser segment

Ineffective purchases: Microsoft experienced failures and disposals as a result of its fewer acquisitions, including WebTV, LinkExchange, Massive, and Danger The largest weaknesses in Microsoft are these kinds of losses on investment

1.3.3 Opportunities

The expansion of cloud infrastructure businesses: In recent years, its cloud-based services have experienced tremendous growth and success Microsoft has a chance to grow its cloud business as a result In order to meet the post-pandemic needs of healthcare organizations and assist them in reimagining healthcare, Microsoft launched Microsoft Cloud for Healthcare

Artificial Intelligence and Innovation: AI and game technology are just two of the many cutting edge fields in which Microsoft has enormous potential Microsoft may gain the upper hand by making investments in these fields

Collaborations and purchases: Microsoft can concentrate on forming fresh partnerships and strategic relationships The company will be able to increase its market share thanks to it Additionally, profitable for Microsoft will be the acquisition of significant high-tech companies In April 2020, Microsoft secured a five-year contract to provide business software to Coca Cola

The smartphone market: The rapidly expanding market for tablets and smartphones presents Microsoft with a great opportunity It is able to profit from the growing market for these goods

The strategy of cost leadership: Microsoft has the potential to enhance its revenue and sales by providing its products at a reduced cost It might also stop hackers from unauthorized use of its program

1.3.4 Threats

The workforce’s associated critiques: Microsoft’s workforce diversity statistics for 2022 revealed an imbalance in the staff members it hired The low percentage of women and minorities in the workforce led to harsh criticism and debates against the company’s HR policy

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Aggressive competition: Microsoft is in severe competition with Apple and Google The market dominance of these businesses may pose a challenge to Microsoft’s position In June 2020, Google upped the ante in the remote work space by introducing editing capabilities, video calling capabilities, and other tools into Gmail in an attempt to entice users away from Microsoft

Shifting customer preferences: The markets for laptops, notepads, and smartphones are very appealing to people In these markets, Microsoft has a small market share

Open-source projects: Numerous new open-source projects that successfully enter the market and provide comparable services for free include Linux OS and Open-Source Office Microsoft, which charges high prices for these products, may be putting them in danger

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CHAPTER II: APPLICATIONS OF ARTIFICIAL INTELLIGENCE (AD) IN MICROSOFT 2.1 Timeline of key Microsoft AI breakthroughs Time Event September 2016 Microsoft achieved human parity in conversational speech recognition January 2018 Microsoft achieved human parity in machine translation Microsoft integrated neural machine translation research June 2019 breakthroughs into Azure and achieved human parity in

general language understanding

July 2019 Microsoft and OpenAI announce exclusive partnership to uy accelerate breakthroughs in AI

February 2020 Microsoft announced Turing-NLG language model at 17 billion parameters

May 2020 Microsoft announced its first AI supercomputers, built in y collaboration with and exclusively for OpenAl

Microsoft teamed up with OpenAI to exclusively license September 2020 GPT-3 models

Microsoft announced AI breakthroughs in image captioning 2020 ;

October available in Azure, Word, Outlook, and PowerPoint Microsoft introduced its first product features powered by May 2021 GPT-3 models

June 2021 GitHub launched Copilot, an AI pair programmer that takes advantage of the OpenAI Codex model to support developers November 2021 Microsoft introduced Azure OpenAI Service

Microsoft expanded access to Azure OpenAI Service with May 2022 more models and new responsible AI system

June 2022 GitHub Copilot became generally available

Microsoft announced DALL-E 2 in Azure OpenAI Service, October 2022 new Designer app, and Bing Image Creator

Microsoft announced Azure OpenAI Service now generally 2023

January available ChatGPT coming soon

2.2 Microsoft Dynamics 365 2.2.1 Introduction

Microsoft Dynamics 365 comprises ERP and CRM tools designed for handling extensive data The incorporation of AI aims to establish a robust machine learning environment, offering users valuable insights into customer behaviors and needs while facilitating swift adjustments to market dynamics Overall, organizations can navigate

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towards more predictive outcomes for their business using Microsoft Dynamics 365 powered by AI components Microsoft Dynamics 365 = Pian Figure 2.1 Microsoft Dynamics 365 2.2.2 Transformational power of AI

Ci) Across industries:

Microsoft has included AI layers within its Dynamics 365 products to provide AI experiences out of the box with immediate time to value For example, AI in Dynamics 365 for Field Service identifies, diagnoses, and addresses equipment issues remotely through self-healing commands Enterprises can extend these functionalities and integrate them with various Microsoft services like Azure, Office, Skype, or augmented reality, offering enhanced flexibility

Microsoft Dynamics 365 broadens its transformative AI features across diverse fields: - Sales: empowers sellers to enhance relationships and boost revenue by offering

actionable insights and creating personalized customer experiences

Figure 2.2 Sales logo

- Customer Service: enhances customer service and reduces support expenses by presenting automated customer insights and utilizing virtual agents

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Figure 2.3 Customer Service logo

- Market Insights: helps users monitor their brand and respond faster to trends by employing AI models to analyze what people are saying about products

Figure 2.4 Market Insights logo

These applications guarantee that enterprises can easily access and make effective use of the power of AI O Within industries: Microsoft Dynamics 365 has developed AI solutions that meet the specific needs of vertical industries - Financial Services: In the realm of financial operations, Microsoft Dynamics 365 for finance and operations addresses challenges arising from changing customer expectations, cybercrime, and fraud

+ Innovative capabilities introduced through a financial services-ready cloud include Next Best Action (NBA) solutions, employing AI to predict customer needs and enhance loyalty

+ Machine learning facilitates more accurate risk analytics and fraud prevention, enabling institutions to identify hidden nsks and reduce operating costs, with additional support from Microsoft Dynamics Fraud Protection that helps these institutions to protect themselves against fraud and achieve a higher revenue

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Manufacturing: The integration of digital technology and [oT in manufacturing provides intelligence for operational efficiency and business performance AI empowers manufacturers with advancements, such as Predictive Maintenance, estimating the remaining useful life of machines to reduce downtime, and real- time Performance Improvements, highlighting potential issues before they occur Retail: In retail, customers desire a personalized experience and cost-effective offerings tailored to their preferences AI assists in:

+ Sales personalization: Intelligence applied to customer history enables retailers to deliver customized experiences, offerings, pricing, planning, and modemizing both online and physical buying experiences

+ Dynamic pricing and planning: Forecasting models, enhance confidence in pricing decisions and reduce losses from overstocks

Public Sector: Citizens in the public sector want assurance that the government cares about them They want a personalized digital experience and smooth operation, addressed by AI tools Two key areas where these innovative AI initiatives are making waves are:

+ Smart cities: Intelligent technology developed to address common issues like fee and toll management, traffic optimization, water scarcity, and sustainability

+ Citizen services: Providing easier access to consolidated government services through tracking, search, and conversational bots

Education: Technology is creating unprecedented opportunities to deeply involve students with their surroundings, unlocking their full potential Education experts and IT professionals are working together to address crucial challenges in education using AI This collaboration has yielded:

+ Accessibility in the classroom: Al-powered tools enhance classroom accessibility, providing real-time lesson translation for diverse language speakers and narration of surroundings for visually impaired students + School-wide AI insights: offer deep analytics into student success and risk,

aiding educators in informed decisions to improve outcomes tailored to individual student needs, including enrollment and payment processes Healthcare: Within the realm of healthcare, challenges such as shortages of clinician, financial pressures and rising patient demands, pose significant challenges for health organizations Integration of AI with Microsoft Dynamics 365 offers potential solutions such as:

+ Personalized medicine: Utilizing AI to analyze vast healthcare data, including genetic makeup, medical history, and lifestyle, facilitates analytics-driven, individualized treatment plans for patients Currently underutilized data can be effectively employed with the assistance of AI