Analysis of business strategies on generative AI-based product launched by Microsoft

Abstract

Generative Artificial Intelligence (GenAI) has significantly transformed a range of sectors, including business, academia, advertising, and more broadly, the technology ecosystem. Its rapid evolution and capabilities have compelled technology-driven industries to invest heavily in this field to maintain competitive advantages and lead innovation in the AI race.

Among the key players in this space, Microsoft has emerged as a notable force through its strategic partnership with OpenAI. This collaboration signifies a major milestone, reflecting Microsoft's commitment to embedding GenAI deeply into its existing technological infrastructure and service portfolio.

This case study aims to critically examine:

The integration of GenAI into Microsoft’s conventional toolkit (e.g., Office Suite, Azure).

The new business strategies and models adopted alongside this integration.

The broader implications for Microsoft's market positioning, innovation pipeline, and user experience.

Before evaluating Microsoft's implementation strategy and its outcomes, the study will first explore the evolution of GenAI—its foundational technologies, capabilities, and key milestones that have led to its current status as a transformative force in the digital economy.