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“Every App Is Going To Be An AI App”

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"Every App Is Going To Be An AI App"

During a recent earnings call with shareholders, the CEO of Microsoft, Satya Nadella, stated that artificial intelligence would eventually be included in all of the company’s applications.

After discussing Microsoft’s financial performance for the last quarter, Nadella answered questions about AI and its expected integration into more products.

Given Microsoft’s commitment to expanding its partnership with OpenAI, it makes sense that shareholders would have questions about when Microsoft plans to use the technology it’s investing in.

Although Nadella wasn’t willing to give a specific date, he stated that AI would be integrated into all of Microsoft’s applications in the future.

In this article, we’ll take a closer look at Nadella’s statements regarding AI and briefly summarize the relevant highlights from Microsoft’s earnings report.

Nadella Says Every Microsoft App Will Be An AI App

Tyler Radke, the Lead Analyst at Citi, asked Nadella about the extent to which AI will be employed throughout Microsoft Azure, which is the cloud computing platform that runs its applications.

This was Nadella’s response:

“I think it’s too early to sort of start somehow separating out AI from the rest of the workload. I mean, even the workloads themselves, AI is just going to be a core part of a workload in Azure versus just AI alone. In other words, if you have an application that’s using a bunch of inference, let’s say, it’s also going to have a bunch of storage, and it’s going to have a bunch of other compute beyond GPU inferencing, if you will. I think over time, obviously, I think every app is going to be an AI app. That’s, I think, the best way to think about this transformation.”

Nadella is saying it’s too early to separate AI into its own category because it’s becoming a core part of all products.

He believes AI will be integrated into all apps over time and will also be integrated with storage and other forms of computing beyond just GPU inferencing.

In response to a question from Keith Weiss of Morgan Stanley, Nadella expressed a similar sentiment, saying investors should expect AI to be included in everything.

“I think the way for our investors to see this is we fundamentally believe that the next big platform wave, as I said, is going to be AI. And we strongly also believe a lot of the enterprise value gets created by just being able to catch these waves, and then have those waves impact every part of our tech stack, and also create new solutions and new opportunities…

And so, we fully expect us to sort of incorporate AI in every layer of the stack, whether it’s in productivity, whether it’s in our consumer services.”

Other Highlights From Microsoft’s Earnings Call

Microsoft announced that in the last quarter of 2022, it made $52.7 billion in revenue, which is 2% more than the year before.

However, the company’s profit is down due to decreases in operating income, net income, and earnings per share.

Advertising spending declined slightly more than expected, impacting search and news advertising and LinkedIn Marketing Solutions.

One of the most notable highlights is the increase in LinkedIn revenue by 10%. This indicates the professional networking platform is performing well and that businesses can feel confident investing their time in it.

Another highlight from the report is the increase in revenue for server products and cloud services by 20%. This growth was driven by the revenue of Azure and other cloud services, which increased by 31%.

This indicates that Microsoft’s cloud services are becoming increasingly popular in the market, which bodes well for the future of the company’s partnership with OpenAI.

Despite a slight decrease in profit, the company’s overall financial performance remains strong.


Source: Microsoft

Featured Image: ThomasAFink/Shutterstock



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5 Questions Answered About The OpenAI Search Engine

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5 Questions Answered About The OpenAI Search Engine

It was reported that OpenAI is working on a search engine that would directly challenge Google. But details missing from the report raise questions about whether OpenAI is creating a standalone search engine or if there’s another reason for the announcement.

OpenAI Web Search Report

The report published on The Information relates that OpenAI is developing a Web Search product that will directly compete with Google. A key detail of the report is that it will be partly powered by Bing, Microsoft’s search engine. Apart from that there are no other details, including whether it will be a standalone search engine or be integrated within ChatGPT.

All reports note that it will be a direct challenge to Google so let’s start there.

1. Is OpenAI Mounting A Challenge To Google?

OpenAI is said to be using Bing search as part of the rumored search engine, a combination of a GPT-4 with Bing Search, plus something in the middle to coordinate between the two .

In that scenario, what OpenAI is not doing is developing its own search indexing technology, it’s using Bing.

What’s left then for OpenAI to do in order to create a search engine is to devise how the search interface interacts with GPT-4 and Bing.

And that’s a problem that Bing has already solved by using what it Microsoft calls an orchestration layer. Bing Chat uses retrieval-augmented generation (RAG) to improve answers by adding web search data to use as context for the answers that GPT-4 creates. For more information on how orchestration and RAG works watch the keynote at Microsoft Build 2023 event by Kevin Scott, Chief Technology Officer at Microsoft, at the 31:45 minute mark here).

If OpenAI is creating a challenge to Google Search, what exactly is left for OpenAI to do that Microsoft isn’t already doing with Bing Chat? Bing is an experienced and mature search technology, an expertise that OpenAI does not have.

Is OpenAI challenging Google? A more plausible answer is that Bing is challenging Google through OpenAI as a proxy.

2. Does OpenAI Have The Momentum To Challenge Google?

ChatGPT is the fastest growing app of all time, currently with about 180 million users, achieving in two months what took years for Facebook and Twitter.

Yet despite that head start Google’s lead is a steep hill for OpenAI to climb.  Consider that Google has approximately 3 to 4 billion users worldwide, absolutely dwarfing OpenAI’s 180 million.

Assuming that all 180 million OpenAI users performed an average of 4 searches per day, the daily number of searches could reach 720 million searches per day.

Statista estimates that there are 6.3 million searches on Google per minute which equals over 9 billion searches per day.

If OpenAI is to compete they’re going to have to offer a useful product with a compelling reason to use it. For example, Google and Apple have a captive audience on mobile device ecosystem that embeds them into the daily lives of their users, both at work and at home. It’s fairly apparent that it’s not enough to create a search engine to compete.

Realistically, how can OpenAI achieve that level of ubiquity and usefulness?

OpenAI is facing an uphill battle against not just Google but Microsoft and Apple, too. If we count Internet of Things apps and appliances then add Amazon to that list of competitors that already have a presence in billions of users daily lives.

OpenAI does not have the momentum to launch a search engine to compete against Google because it doesn’t have the ecosystem to support integration into users lives.

3. OpenAI Lacks Information Retrieval Expertise

Search is formally referred to as Information Retrieval (IR) in research papers and patents. No amount of searching in the Arxiv.org repository of research papers will surface papers authored by OpenAI researchers related to information retrieval. The same can be said for searching for information retrieval (IR) related patents. OpenAI’s list of research papers also lacks IR related studies.

It’s not that OpenAI is being secretive. OpenAI has a long history of publishing research papers about the technologies they’re developing. The research into IR does not exist. So if OpenAI is indeed planning on launching a challenge to Google, where is the smoke from that fire?

It’s a fair guess that search is not something OpenAI is developing right now. There are no signs that it is even flirting with building a search engine, there’s nothing there.

4. Is The OpenAI Search Engine A Microsoft Project?

There is substantial evidence that Microsoft is furiously researching how to use LLMs as a part of a search engine.

All of the following research papers are classified as belonging to the fields of Information Retrieval (aka search), Artificial Intelligence, and Natural Language Computing.

Here are few research papers just from 2024:

Enhancing human annotation: Leveraging large language models and efficient batch processing
This is about using AI for classifying search queries.

Structured Entity Extraction Using Large Language Models
This research paper discovers a way to extracting structured information from unstructured text (like webpages). It’s like turning a webpage (unstructured data) into a machine understandable format (structured data).

Improving Text Embeddings with Large Language Models (PDF version here)
This research paper discusses a way to get high-quality text embeddings that can be used for information retrieval (IR). Text embeddings is a reference to creating a representation of text in a way that can be used by algorithms to understand the semantic meanings and relationships between the words.

The above research paper explains the use:

“Text embeddings are vector representations of natural language that encode its semantic information. They are widely used in various natural language processing (NLP) tasks, such as information retrieval (IR), question answering…etc. In the field of IR, the first-stage retrieval often relies on text embeddings to efficiently recall a small set of candidate documents from a large-scale corpus using approximate nearest neighbor search techniques.”

There’s more research by Microsoft that relates to search, but these are the ones that are specifically related to search together with large language models (like GPT-4.5).

Following the trail of breadcrumbs leads directly to Microsoft as the technology powering any search engine that OpenAI is supposed to be planning… if that rumor is true.

5. Is Rumor Meant To Steal Spotlight From Gemini?

The rumor that OpenAI is launching a competing search engine was published on February 14th. The next day on February 15th Google announced the launch of Gemini 1.5, after announcing Gemini Advanced on February 8th.

Is it a coincidence that OpenAI’s announcement completely overshadowed the Gemini announcement the next day? The timing is incredible.

At this point the OpenAI search engine is just a rumor.

Featured Image by Shutterstock/rafapress

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Warning: Unpopular SEO writing opinion

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Warning: Unpopular SEO writing opinion

Unpopular opinion alert: Adding new blog posts may not help your site.

(No matter what that content marketing company told you.) 🙄

So many of my new clients — especially subject matter experts — don’t need new content (immediately).

They HAVE content — scads of it scattered across various platforms.

(Maybe that sounds familiar.)

What they DO need is someone to review their content and customer persona, pinpoint opportunities, and develop a baby-step approach to leveraging those older content assets.

Because there are always opportunities. 🔥

Before writing another word, ask…

  • Are you repurposing the content you have? Or are you writing it once and forgetting about it (which is so common)?
  • Is your customer/reader persona still accurate, or has your target audience changed post-COVID?
  • Do your sales pages showcase your benefits and speak to your customers’ pain points? Or are they flat and dull?
  • Does your content sound like YOU with a point of view? Or is there a massive disconnect between how you talk to clients and the words you use on your site?
  • When did you last take a peek at your old sales emails and email welcome sequences? Could updating those assets make you more money?
  • Isn’t it time to save time (and budget) and leverage your existing content?

If you need help untangling your content and messaging, let me know. I love creating content order out of chaos.

After all…

 

Warning Unpopular SEO writing opinion

 

What do you think? Leave your comment below.

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Google Bans Impersonation In Ads

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Google Bans Impersonation In Ads

Google bans impersonation and false affiliation in ads, enforcing policy changes in March.

  • Google bans impersonation and false affiliation in ads.
  • Policy enforcement starts in March.
  • Violators will be banned from Google Ads.

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