The Dilemma of Microsoft with ChatGPT

Microsoft is facing a big dilemma with ChatGPT. The huge costs of running ChatGPT is now a burden to Microsoft and its investors. Can they find a real valuable use case for ChatGPT? And what is the next step for ChatGPT?

The launch of new Microsoft 365 Copilot

On March 16th, Microsoft introduced the new Microsoft 365 Copilot. It combines the power of ChatGPT and the Microsoft 365 apps to allow users to use the Question and Answer style to ask AI to help finish daily office tasks. Whether a small business owner or a large corporation, Microsoft 365 Copilot is suppose to be a powerful productivity tool to take your business to the next level.

Here is an explanation from Microsoft about the new Co-pilot feature and how you can use it: https://blogs.microsoft.com/blog/2023/03/16/introducing-microsoft-365-copilot-your-copilot-for-work/

The Step Back of Microsoft

But when you compare this with the promotion of generative AI Microsoft did weeks ago, it’s easy to sense that Microsoft is now facing a huge dilemma. One of their main revenue streams comes from Office subscriptions. It’s a user-based model.

If the ChatGPT or large language model becomes too powerful, will it lower the subscription number of Office users? Generative AI is attractive to business owners. If a machine can write a better email than human employees, why would they still hire so many people? Will AI be against the entire human society? We don’t know that yet.

Moreover, the colossal cost of ChatGPT is now a burden. According to the Washington Post, a single chat with ChatGPT could cost up to 1,000 times as much as a simple Google. If ChatGPT is free, no company can bare these costs forever, and it can’t sustain and make a large language model form a long-term business model. They must find a use case in which ChatGPT can generate enough revenue to cover the training costs or at least part of them.

That’s a huge dilemma. As a tech company, it’s hard to balance the new innovation with the business value it can bring. And this is so critical. We can already read from the news that the progression of ChatGPT has slowed down. Users start feeling that GPT is becoming somehow not as intelligent as months ago.

Microsoft also invited so many silicon tech companies to join to explore the application of ChatGPT with different integrations. So far, those attempts have yet to reach significant social impact.

What will be the next step for ChatGPT? Does Generative AI have a future?

Microsoft is trying hard to find use cases for ChatGPT. Not only them but every AI company is also working hard to find a use case for the new generation of AI. What if nobody can find a sustainable business model? Then the ChatGPT needs to wait for another wave.

Microsoft dilemmafuture of AIMicrosoft Copilot365 Copilot

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