MICROSOFT

ARTIFICIAL INTELLIGENCE

Microsoft is actively involved in the development of artificial intelligence (AI) technology. To assert itself as a leader, it primarily focuses on AI in three different areas:

• Microsoft AI platform that allows users to develop solutions in machine learning, robotics, conversational AI, and the Internet of Things (IoT). 
• Intelligent applications that incorporate AI in Microsoft products and services used on a daily basis.
• AI for business for a number of sectors including government, manufacturing, healthcare, and retail.

In addition to its business activities on AI, Microsoft is heavily involved in discussions on the social and political aspects of AI. In 2019, Microsoft adopted a set of six principles to guide the development and use of human-centric AI ‒ fairness, reliability and safety, privacy and security, inclusiveness, transparency, and accountability ‒ that will guide the development of AI technologies at Microsoft.

As a company that develops facial recognition technology (FRT), Microsoft has also been involved in discussions regarding the impact and potential risks resulting from the use of FRT, in particular by law enforcement agencies (LEAs). The company called for regulations to govern the development and use of this technology; such regulations would help address issues related to privacy and bias and discrimination in decisions made on the basis of FRT. In addition, Microsoft adopted six principles that will orient its facial recognition efforts: fairness, transparency, accountability, non-discrimination, notice and consent, and lawful surveillance. The company warned that the extensive and unlawful use of FRT by authorities could unleash mass surveillance on an unprecedented scale, and called on governments to ensure that FRT use is subject to the rule of law and that legislation is adopted and implemented to only allow LEAs to use FRT in public spaces on the basis of a court order or in clearly determined emergency situations.

Some of Microsoft’s AI-enabled products and services, such as Azure, are made available to defence and intelligence institutions. In October 2019, the US Department of Defense awarded Microsoft a USD$10 billion contract for the provision of AI-enabled cloud services to support storage DoD businesses and mission operations. As of March 2020, and following legal challenges brought by Amazon, it is uncertain whether the award will be maintained.

Microsoft is also a member of the Partnership on AI, an international coalition focused on promoting responsible use of AI. Moreover, it recently signed the Rome Call for Ethical AI launched by the Vatican.

BLOCKCHAIN

Blockchain is another area of the tech industry where Microsoft plays an important role. In 2018, it launched the so-called Azure Blockchain Development Kit that builds on Microsoft’s serverless technologies. The company also launched Azure Blockchain Workbench and Azure Blockchain Services, which allow for the formation, management, and governance of consortium blockchain networks.

More recently, Microsoft released Azure Blockchain Data Manager that will transfer on-chain data and connect it to other apps, thus allowing data from inside smart contracts to be sent to different databases or data stores.

Microsoft is also part of the Enterprise Ethereum Alliance. In 2019, the alliance developed a specification – the Token Taxonomy Framework – to allow businesses to create blockchain-based tokens for international trade and finance.

The company offers blockchain services tailored to governmental needs and encourages public authorities to deploy blockchain as a way to improve security practices, increase transparency, and better adhere to regulatory compliance.

INTERNET OF THINGS

Like Blockchain, IoT is also available through Microsoft Azure. Through the platform, Microsoft allows users to develop and deploy secure IoT applications. IoT solutions can be developed through a number of channels in Azure including Azure IoT Central that allows users to build solutions with a hosted IoT application platform, Azure Digital Twins that allows consumers to build IoT spatial solutions that mimic the real physical space, and Azure IoT Hub that allows for bi-directional communication between IoT devices and Azure.

Microsoft has committed to investing USD$5 billion in IoT research.

As part of its Azure Government suite, Microsoft offers IoT services to government agencies. The company is also involved in the development and deployment of smart city solutions.

AUGMENTED/VIRTUAL REALITY

Augmented and virtual reality (AR/VR) tools are also being developed by Microsoft. In 2019, Microsoft launched the HoloLens 2 augmented reality headset. The device allows users to communicate, learn, and collaborate across the board and is an upgrade of the HoloLens headset released in 2015.

As is the case with other of its technologies and services, Microsoft is willing to make its AR/VR tech available to military and defence institutions. For example, in November 2019, the US Department of Defense awarded Microsoft a USD$479 million contract to contribute to the department’s Integrated Visual Augmentation System. The deal was criticised by Microsoft employees, who asked the company not to provide weapons technology to the US military. Microsoft officials responded that the contract was in line with the company’s ‘principled decision that we’re not going to withhold technology from institutions that we have elected in democracies to protect the freedoms we enjoy’.

QUANTUM COMPUTING

Microsoft is developing its capacities in the emerging field of quantum computing. It offers pre-built solutions, hardware, software, and support through Azure Quantum.

To expand the quantum network, Azure Quantum has established a community where quantum developers can exchange know-how and experience. In addition they can build quantum technology and applications through the Quantum Development Kit, an open-source development kit available on GitHub.

Microsoft is co-operating with academic and research institutions around the world to advance quantum computing research. Examples include a partnership with the University of Copenhagen to build a scalable quantum computing, and a partnership with the University of Sydney Nano Institute on broad quantum computing research.