Microsoft has a problem: nobody wants to buy or use its shoddy AI products (plus more layoffs incoming)

Grand Conde

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Damn, Jez now putting hits out on Nadella? :whoo:

https://www.windowscentral.com/artificial-intelligence/microsoft-has-a-problem-nobody-wants-to-buy-or-use-its-shoddy-ai

If there's one thing that typifies Microsoft under CEO Satya Nadella's tenure: it's a general inability to connect with customers.

Microsoft shut down its retail arm quietly over the past few years, closed up shop on mountains of consumer products, while drifting haphazardly from tech fad to tech fad. From blockchain to "metaverse" and now to artificial intelligence — Microsoft CEO Satya Nadella can't seem to prioritize effectively, and the cracks are starting to shine through.

A recent report from The Information detailed how Microsoft's internal AI efforts are going awry, with cut forecasts and sales goals for its Azure AI products across the board. The Information said that Microsoft's sales people are "struggling" to meet goals, owing to a complete lack of demand. Microsoft denied the reports, but it can't deny market share growth trends — all of which point to Google Gemini surging ahead.

Last week we wrote about how Microsoft Copilot's backend partner OpenAI issued a "code red" situation. ChatGPT has fallen behind Google Gemini in problem solving, and Nano Banana image generation has outpaced OpenAI's own DALLE by leaps and bounds.

With OpenAI's business model under constant scrutiny and racking up genuinely dangerous levels of debt, it's become a cascading problem for Microsoft to have tied up layer upon layer of its business in what might end up being something of a lame duck.


https://www.windowscentral.com/microsoft/satya-nadella-calls-microsofts-size-a-massive-disadvantage-in-ai

While speaking with Mathias Dpfner, CEO of Axel Springer, the executive admitted that he spends of of his weekends learning about how startups build and develop products. Nadella indicated that Microsoft's size "has become a massive disadvantage" as it tries to establish dominance in the AI space (via Business Insider).

According to the executive, startups are able to make informed decisions quickly because everyone involved in the product development process all sit at the same table. Perhaps more interestingly, Nadella seemingly shared a solution for this issue: unlearning old habits and techniques that once made companies successful and embracing new approaches.
 

Pressure

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Businesses don’t know whose going to win the AI race and if it will actually live up to its promises.

Most companies are still in a wait and see mode.
This doesn’t even include issues with having properly structured data already, regulatory reqs, among other things that slow AI adoption.

As far as copilot, it’s vastly different from how it operates from product to product within the o365 suite.
 

Rekkapryde

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TYRONE GA!
Microsoft is just not cool.
They've had this problem since, Hi, I'm a Mac, I'm a PC
Their products not being as innovative as the competition is no surprise either knowing their culture


doesn't help that they just fad ride instead of coming up with their own shyt. :francis:
 

winb83

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This is not only a Microsoft problem BTW
These companies have no idea what to do with AI as a product or service to sell to consumers. OpenAI is just blowing money letting users generate Sora 2 videos of Hitler dapping up MLK after throwing JFK through a table in a WWE promo and they have no way or monetizing it. Millions of dollars every day they're wasting on it.
 

Rayzah

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MS is just not cool, other the an having a monopoly on OS they can’t get anything else to pop. They failed at phones, and they failed at VR they were the first to jump behind open ai and somehow google still surpassed them even after bard failed.

As for AI no one knows how this is going to play out and everyone is just spouting random nonsense just to say they were first. But ai is here to stay. It has all but replaced google and is free therapy/personal assistant at the very least.

If you have a business and you are not using it effectively then you are hustling backwards.
 

Apollo Creed

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These companies have no idea what to do with AI as a product or service to sell to consumers. OpenAI is just blowing money letting users generate Sora 2 videos of Hitler dapping up MLK after throwing JFK through a table in a WWE promo and they have no way or monetizing it. Millions of dollars every day they're wasting on it.

its the issue (and why Product Management as a concept exists) of creating shyt and then tryna solve problems vs understanding customer needs and then finding a solution. It's why most Engineer Run orgs suck (Google had a run of being ass when it came to new products that were not Search or Android).
 

MeachTheMonster

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Every day, week, year yall get on here and say how terrible microsoft is, how they fail at everything, how they are not “cool” and everybody hates them.

Every day, week, year Microsoft continues to grow and exist as one of the most valuable and profitable companies on earth.


Maybe……just maybe….your cac tweet fueled perspective isn’t grounded in reality…. :jbhmm:
 

The Phoenix

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Most of these AI products are trash. They praise Gemini but it's wrong all the time and confidently in its wrongness. OpenAI is a money furnace. I have an iPhone 15 and I've never even used Apple Intelligence.
I use Gemini daily and it's info is spot on :yeshrug:
 
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