Microsoft has saved more than $500 million in its call center operations over the past year by using artificial intelligence, according to a recent report. The tech giant is leveraging AI across various departments including sales, customer service and software engineering to improve productivity and streamline operations.
Microsoft’s Chief Commercial Officer Judson Althoff said during a presentation this week that AI tools are already playing a key role in handling customer interactions, especially with smaller clients. These early efforts are reportedly generating tens of millions of dollars in value.
The report also noted that AI now generates 35 percent of the code for new products, helping speed up launch timelines significantly.
Despite the cost savings from AI, Microsoft recently announced plans to reduce its workforce. Last week, the company revealed it would lay off nearly 4 percent of its global staff as it aims to control costs while continuing its major investments in AI. In May, Microsoft had already cut around 6,000 jobs as part of this strategy.
The company is planning to spend $80 billion in capital expenditures this fiscal year, most of which will go toward expanding data centers. This move is aimed at resolving capacity issues and supporting the growing demand for AI-driven services.
As big tech companies race to lead in AI, many are ramping up investment in infrastructure and technology while reducing costs in other areas to protect profit margins.
Microsoft declined to comment when approached regarding the developments.
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