Sunday, February 25, 2024
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Microsoft’s Super Bowl message: We’re an AI company now


Microsoft returns to the super bowl with an ad for its AI-powered chatbot – a sign of the company’s determination to shed its image as a clunky software maker and reorient its products around the promise of artificial intelligence.

The one-minute ad, posted to YouTube on Thursday, shows people using their cellphones to access Copilot, the AI ​​assistant Microsoft rolled out last year. The app helps people automate various tasks, from generating computer code snippets to creating digital art.

Microsoft’s Super Bowl spot, its first in-game appearance in four years, highlights the company’s efforts to reinvent itself as an AI-driven company. The tech giant has invested billions in developing its AI prowess, including investing $1 billion in OpenAI in 2019, and has integrated the technology into flagship products like Microsoft Word, Excel and Azure.

Now, Microsoft wants consumers and businesses looking for a boost from AI-based programs to turn to its services, rather than competitors such as Google, which announced Thursday announced an upgrade to its competing AI program.

For global tech companies, a lot depends on who ultimately wins the AI ​​race, Dan Ives, an analyst at Wedbush Securities, told CBS MoneyWatch, with projections that the market could reach $1.3 trillion in size. ‘by 2032. “It’s not your grandfather’s Microsoft anymore…and the Super Bowl is a unique moment to further change perceptions,” he said.


Microsoft Game Day Ad | Copilot: your daily AI companion by
Microsoft on Youtube

Advertisers are paying about $7 million for 30 seconds of airtime in this year’s game, with an expected audience that could reach more than 100 million viewers.

Microsoft wants viewers to know that its Copilot app is getting an upgrade “coinciding with the launch of our Super Bowl commercial,” including a “cleaner, sleeker look” and suggested prompts that could help people exploit its AI capabilities, wrote Microsoft Consumer Chief Marketing. officer Yusuf Mehdi in a blog post this week.

So far, Microsoft’s strategy is paying off. Its cloud-based revenue jumped 24% to $33.7 billion in its most recent quarter, thanks for example to the integration of AI into its Azure cloud computing service. And investors are buying into it: The company’s market valuation of $3.1 trillion now ranks it ahead of Apple as the most valuable company in the world.

The Super Bowl has become the most-watched prime-time television show in recent years as audiences have become more fragmented with the rise of streaming platforms and social media. In 2023, the event attracted an audience of approximately 115 million viewers, twice as many viewers as the second most-watched television event that year, according to Variety’s primetime rankings.


Behind the scenes of some upcoming Super Bowl commercials

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According to Ives, this unparalleled exposure could help Microsoft maintain its lead over several large technology companies amid an increasingly intense AI market dominance.

“It was a poker move for the ages when Microsoft was getting ahead in AI… now others are chasing them,” Ives said. Microsoft “is in a Ferrari in the left lane going 100 miles per hour, while other competitors are in a minivan going 30 miles per hour.”



Note: The content and images used in this article is rewritten and sourced from www.cbsnews.com

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