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Cloud and AI integration: Advantage Azure

31 October 2023
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Cloud revenues are reflecting patterns of AI integration. As big tech companies jostle for advantage, Microsoft and Azure claim an early lead

Cloud profits remain crucial for wider tech businesses, affecting ability to innovate

Strategies to develop and market cloud-based AI tools are diverging, with uncertainty rife. The ecosystem will shift as the demands of consumers and regulators becomes clearer

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AI and search: Microsoft looks to shake up a $175 billion market

27 March 2023

Microsoft and Google are both incorporating AI-powered chatbots into their core search offering. This will create a better user experience for some search categories earlier in the customer journey.

Search is a huge prize, bigger than TV advertising, and AI represents the biggest potential shakeup to that market since the rise of mobile. With ~95% market share outside China, Google's risk is to the downside.

Search is an early, but not the most natural, home for conversational AI: Microsoft and Google have also announced integrations into productivity software. Expect a wide range of services to be transformed by AI integrations as startups and tech giants alike seek share in newly contestable markets.

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The tech turnaround: Platforms end first half on a high

14 August 2023

After a period of stagnation, many of the core business lines at the US tech mega-caps are back to posting respectable growth figures. The rest of the year will bed in strong revenue growth.

However, the sector is still facing a transition to new priorities. Core business strength should allow firms to shift from cost-cutting to the investment needed to fight the more competitive era they are facing.

AI is the number one focus, but the market for AI tools themselves is still nascent. Applying AI to internal problems has more promise. For instance, it is helping Meta solve its measurement and engagement problems.

Access report

  • AI and search: Microsoft looks to shake up a $175 billion market

    27 March 2023

    Microsoft and Google are both incorporating AI-powered chatbots into their core search offering. This will create a better user experience for some search categories earlier in the customer journey.

    Search is a huge prize, bigger than TV advertising, and AI represents the biggest potential shakeup to that market since the rise of mobile. With ~95% market share outside China, Google's risk is to the downside.

    Search is an early, but not the most natural, home for conversational AI: Microsoft and Google have also announced integrations into productivity software. Expect a wide range of services to be transformed by AI integrations as startups and tech giants alike seek share in newly contestable markets.

    Access report

  • The tech turnaround: Platforms end first half on a high

    14 August 2023

    After a period of stagnation, many of the core business lines at the US tech mega-caps are back to posting respectable growth figures. The rest of the year will bed in strong revenue growth.

    However, the sector is still facing a transition to new priorities. Core business strength should allow firms to shift from cost-cutting to the investment needed to fight the more competitive era they are facing.

    AI is the number one focus, but the market for AI tools themselves is still nascent. Applying AI to internal problems has more promise. For instance, it is helping Meta solve its measurement and engagement problems.

    Access report