Morgan Stanley has named Microsoft as its top large-cap software pick, citing strong demand, promising AI growth prospects, and increasing margins in Azure AI, with a bullish outlook and a $650 price target.
Microsoft has made significant announcements at its Build 2024 developer conference, including the broad availability of Azure AI Studio, integration of OpenAI's GPT-4o model as an API, and the introduction of new multimodal models in the Phi-3 family of AI small language models. These advancements aim to empower developers to build transformational AI experiences, with features such as text, image, and audio processing, as well as speech analytics and universal translation in Azure AI Speech.
Microsoft has introduced measures to address prompt injection attacks and hallucinations in AI systems, particularly in its Copilot AI. The company has launched tools to identify and mitigate these issues, as well as to help users improve their prompt engineering skills. Microsoft aims to enhance the quality and safety of chatbot outputs by providing guidance on proper prompt usage and grounding data sources within its Azure AI system.
Microsoft has introduced new safety features for Azure AI, including Prompt Shields, Groundedness Detection, and safety evaluations, to detect vulnerabilities, block malicious prompts, and prevent generative AI controversies. These tools aim to provide easy-to-use safety measures for customers without deep expertise in AI security. The system evaluates prompts and model responses for banned words, hidden prompts, and hallucinations, while also allowing for customized control over filtering hate speech and violence. The safety features are immediately available for popular models like GPT-4 and Llama 2, with plans to expand to other AI models on Azure.
Microsoft highlights developments in its assistive products at its Ability summit, including new features like AI-powered audio descriptions and the Azure AI studio, as well as collaborations with organizations like Team Gleason and Answer ALS. The company is previewing a feature called "Speak For Me" to help those with speech disabilities communicate using custom neural voices, and is also updating Copilot with new accessibility skills. Chief accessibility officer Jenny Lay-Flurrie emphasizes the importance of responsible AI in building assistive products, while guest speakers at the summit discuss mental health and experiences living with chronic illnesses.