Microsoft's dilemma with investment in generative AI / Arpita Agnihotri, Saurabh Bhattacharya.

Format:

Book

Author/Creator:

Agnihotri, Arpita, author.

Bhattacharya, Saurabh, author.

Series:

SAGE business cases.

SAGE business cases

Language:

English

Subjects (All):

Artificial intelligence--Business applications--Case studies.

Artificial intelligence.

Generative artificial intelligence--Case studies.

Generative artificial intelligence.

Physical Description:

1 online resource : illustrations.

Place of Publication:

London : SAGE Publications: SAGE Business Cases Originals, 2026.

Summary:

The case discusses how Satya Nadella, CEO of Microsoft, in October 2024, took the risk of heavy capital expenditure into generative AI, where analysts saw success as not guaranteed, and Microsoft expected payback time on the investment to be at least 15 years. This long gestation period raised concerns among the investment community, as the failure rate of artificial intelligence (AI) projects was generally high across different companies. To pursue its generative AI growth, Microsoft was leveraging all three growth strategies: organic, inorganic, and hybrid. Though some industry experts believed that Microsoft could succeed in the generative AI product category, like Microsoft Copilot, concerns remained with Microsoft's pricing strategy. Several consumers and enterprises denied paying for generative AI products because they believed the cost was too high. What pricing strategy did Microsoft opt for its generative AI? How can Microsoft price its AI products more competitively? What are the challenges associated with its investment in generative AI? How can Microsoft improve its growth strategy?

Notes:

Description based on XML content.

ISBN:

979-83-488-5270-2

OCLC:

1569208479

Publisher Number:

T301083