Microsoft, Dentsu Strengthen AI Innovation Partnership
Dentsu Group has launched enterprise-wide access to Microsoft Azure OpenAI technologies.
The deal, announced Wednesday, will allow employees to develop solutions for clients based on artificial intelligence (AI).
The news comes one day after Microsoft reported that revenue rose 8% year-over-year in the fiscal fourth quarter, which ended June 30.
Dentsu described two new customer experience management (CXM) solutions it has already developed with help from Microsoft: Merkle GenCX, an offering that uses the power of generative AI to deliver impactful customer experiences, and AI Playground LATAM, a regionally focused set of customized solutions that use emerging technologies combined with integrated audience data to bring more day-to-day efficiency and operational agility to clients.
Dentsu acquired Merkle in 2016. Merkle has been a leader in technology and data.
Global Equities Research believes that Microsoft is setting the pace for the AI industry.
“Artificial intelligence is being woven into the fabric of our society and represents a generational opportunity for our people and our clients,” says Dentsu Group CIO Dominic Shine. “By extending our deep partnership with Microsoft and rolling out Azure OpenAI infrastructure, we’re making AI resources accessible to all Dentsu employees within a framework defined on ethical and responsible AI principles.”
On Tuesday, Microsoft reported net income that totaled $20.08 billion — up from $16.74 billion, or $2.23 per share, in the year-ago quarter.
The Intelligent Cloud segment, the unit that comprises Azure public cloud and other services, contributed $23.99 billion to total revenue.
The company doesn’t callout and report quarterly Azure revenue, but on the conference call with analysts, Microsoft CEO Satya Nadella said “Microsoft Cloud surpassed $110 billion in annual revenue, up 27% in constant currency, with Azure all up accounting for more than 50% of total for the first time.”
Microsoft Advertising revenue has risen 8%, with Bing AI surpassing one billion chat sessions and created more than 750 million images, the company said during the earnings call. The company also discussed continued growth opportunities in search and advertising despite some near-term headwinds.
Amy Hood, Microsoft’s finance chief, said that as Microsoft invests to meet rising demand for AI services, the company should see any impact from higher revenue in the second half of the 2024 fiscal year.
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