As part of the deal, Vodafone will invest $1.5 billion (34 billion Czech crowns) in customer-centric artificial intelligence developed using Microsoft’s Azure OpenAI and Copilot technologies, and will also replace physical data centers with Azure cloud services cheaper ones capable of processing larger volumes of data, the operator reported on Tuesday.
With the help of Microsoft’s generative artificial intelligence, in particular AI chatbots, Vodafone wants to improve customer service. AI will also help power Vodafone’s global IoT platform at scale. The companies will also jointly develop digital and financial services for businesses, especially SMEs in Europe and Africa.
Microsoft will also become an equity investor in Vodafone’s IoT platform when it is spun off into a separate business. This is expected to happen by April 2024. Microsoft will also use Vodafone’s fixed and mobile services.
Artificial intelligence will affect almost half of jobs. Inequality will worsen, warns the International Monetary Fund
What is the Internet of Things?
Behind the acronym IoT (Internet of Things) are intelligent devices that are capable of connecting to the Internet and communicating with each other via this global computer network.
Typically these are, for example, devices that allow remote monitoring or control of certain functions. It is possible to connect to them via a smartphone or tablet via the Internet, even if the user is on the other side of the planet.
The global computer network can be used in this way by all kinds of recorders, weather stations, but also smart light bulbs that can regulate the temperature of the light.
More coherent and intelligent responses
Vodafone CFO Luka Mucic said Microsoft’s leadership in artificial intelligence, supported by its partnership with OpenAI, will transform customer service. The TOBi chatbot, supported by Microsoft’s artificial intelligence, will provide more coherent and intelligent answers to questions, he said.
Microsoft is currently considered the world’s leading service provider in the field of artificial intelligence, among other things because the group, thanks to billions in investments, has secured early access to OpenAI technology. Microsoft’s investment in artificial intelligence has recently boosted its stock price, and Microsoft is now competing with Apple for the position of the world’s most valuable company, DPA reported.
Vodafone is battling with competitors Telefónica and Orange for the position of Europe’s second largest telecommunications company. The European market leader is Deutsche Telekom. Vodafone also operates in the Czech Republic, where it provides services to over 4.5 million customers.
A phenomenon called ChatGPT
Artificial intelligence took center stage with the development of ChatGPT. This chat system can generate a variety of texts including articles, essays, jokes and poems based on simple questions. ChatGPT learns to respond to user input and, like humans, learns from large amounts of data.
In March 2023, a more advanced GPT-4 AI model was made available. It should be able to provide safer and more useful answers and pave the way for the spread of human-like technologies.
The web application is offered for free by OpenAI, but this only applies to the older version of the GPT-3.5 chatbot. GPT-4’s more advanced AI, capable of providing more accurate and helpful answers, can only be used by subscription owners. This will cost potential interested parties $20 per month, which is approximately CZK 453 in conversion.
ChatGPT is behind OpenAI, a start-up funded by Microsoft.
The European Commission will shed light on the partnership between Microsoft and OpenAI
