Microsoft’s yr has been clearly dominated by one main matter – and that’s AI. Though that’s true of a good few tech corporations, in fact, seeing as in 2023, synthetic intelligence grew to become an enormous juggernaut just about everybody jumped aboard.

We witnessed the creation of Bing AI, after which its incorporation in Home windows 11 as Copilot, a desktop-based AI assistant, plus rather more apart from. So, let’s dive in and consider the yr Microsoft has had, and whether or not it’s been a productive and profitable interval for the tech big.

Bing me the horizon

Any dialogue of Microsoft’s 2023 ought to certainly begin with the progress the corporate made on the AI entrance, the place it assuredly cast forward by the yr, making it clear that the agency is placing an entire lot of eggs on this specific basket for the longer term.

This all kicked off proper again at the beginning of the yr, when in January, Microsoft invested a whopping $10 billion in OpenAI, the maker of ChatGPT.

It was no shock when Microsoft subsequently launched its Bing AI in February with that synthetic intelligence constructed round ChatGPT.

There was an avalanche of curiosity within the new Bing chatbot (which was later renamed to Copilot – however not till the top of the yr, and for readability’s sake, we’ll seek advice from the web-based chatbot as Bing AI right here, to assist differentiate from Copilot in Home windows). Regardless of early controversies with the ChatGPT-powered AI bot – involving hallucinations and different oddness – Microsoft shortly established a lead over its rival Google Bard.

Since then, Microsoft has improved its AI and bolted on further options at a good previous charge of knots. Bing AI was shortly up to date to run GPT-Four when OpenAI launched that new model of its LLM (massive language mannequin), and it made huge strides ahead by way of picture creation (which is now extraordinarily spectacular) for instance, and lots of different areas apart from.

Whereas Google’s Bard has been perceived as catching as much as Bing AI considerably, Microsoft has saved improvement going at a swift tempo.

AI clearly grew to become a super-hot ticket in 2023, but when something illustrates the burden it now carries at Microsoft, it’s a change in angle with Home windows 10.

For those who recall, with the launch of the Bing chatbot, it felt very very like Microsoft’s hope was that the AI might be used to drive its different providers forwards. For instance, that Bing AI would imply extra site visitors for Bing.com search, propelling the latter forwards within the battle towards Google’s search engine (this didn’t work out, by the best way).

Or that placing the AI into Home windows 11 – in a extra in depth type, because the Copilot assistant, as occurred in September – would maybe assist to influence individuals to improve from Home windows 10. Principally, utilizing it as a serious carrot, an enormous new function, to tempt people.

Effectively, if that ever was the concept, it was turned on its head as 2023 rolled to a detailed, and in November, Microsoft introduced it was bringing Copilot to Home windows 10. Keep in mind, this occurred after Microsoft saying earlier within the yr that Home windows 10 was successfully on life help, feature-wise, and would solely get minor tweaks if something in any respect. And Copilot, nicely – you couldn’t get a extra main change.

What this illustrates for us – and it’s simply our concept, thoughts – is how completely essential AI is to Microsoft now. Initially, it could have been partly seen as a automobile to get individuals to make use of Bing.com search, or migrate to Home windows 11, and so forth – however now, it’s the opposite method round. Extra Home windows customers are wanted to bolster AI utilization numbers, in different phrases, therefore bringing Copilot to the billion-strong ranks of Home windows 10’s userbase – after Microsoft mentioned the older OS would get no significant additions.

As November rolled to a detailed, Microsoft nearly made one other huge transfer on the AI entrance. By which we imply for a really transient interval, Microsoft was going to enroll Sam Altman after he was ousted as CEO of OpenAI, however in the long run he returned to the corporate after OpenAI’s board shortly reversed course.

What’s attention-grabbing is that Satya Nadella tried to draft Altman on board to move up a ‘new superior AI analysis agency’ at Microsoft as quickly as Altman (briefly) parted methods with OpenAI, once more displaying how laser-focused and critical Microsoft is by way of pushing with AI (if you happen to wanted any extra proof).

Home windows 11: Cleared for AI take-off

So what went down with Microsoft’s desktop OS this yr? As we’ve simply talked about, the largest introduction for Home windows 11 was the Copilot AI – though to a big extent, this function is extra about what’s coming down the road, than what we’ve really obtained within the working system proper now.

Microsoft has promised that Copilot will ultimately turn into a robust AI assistant with the power to vary a number of Home windows settings in a single fell swoop, permitting for customers to request one thing easy (‘I need to focus and be extra productive’) and bringing in choices and options to assist with that. It’ll have plug-ins to develop its performance significantly, and obtain duties akin to implementing a load of tweaks to make the PC run quicker, for instance.

Nevertheless, proper now, Copilot stays a glorified model of the Bing chatbot that sits in a side-panel on the desktop, with little in the best way of those far-reaching Home windows-altering powers. It holds a ton of promise, for positive, however thus far, the fact is a bit underwhelming.

Home windows 11: Streamlining and unwelcome strategies

Other than the AI assistant, one other angle Microsoft labored with Home windows 11 was streamlining the OS all year long. We witnessed a variety of welcome initiatives to chop again on the bloat, together with eliminating some redundant bits of the interface and system apps, in addition to permitting the consumer to uninstall among the default apps in Home windows 11.

This was a little bit of a theme on a extra basic degree, too, when you think about that with its Edge browser, Microsoft began pruning options somewhat than chucking extra within the pot – realizing the hazard of bloating the consumer. Moreover, we noticed an intent to streamline Home windows 11 to be used in gaming handhelds (just like the Asus ROG Ally) with a brand new ‘compact mode’ for the interface of the Xbox app, which is probably step one on the street to the rumored ‘handheld mode’ which will ultimately be realized.

It’s additionally price noting that some much-wanted options arrived in Home windows 11 this yr – for instance, the choice to ‘by no means mix’ apps on the taskbar.

Sadly, what was unwelcome with Home windows 11 this yr was an elevated targeted on jamming thinly-veiled adverts into the interface right here and there. Microsoft calls this ‘badging’ and couches a few of this as providing suggestions, however the line between making an attempt to assist the consumer with strategies, and pushing its personal providers with what are successfully adverts, is a really skinny and blurry one. We additionally noticed additional efforts to continuously push Edge on Home windows customers, too (a well-recognized story).

What actually put some noses out of joint, although, is the revelation in the direction of the top of 2023 that Microsoft will give European customers the power to really ditch Edge from Home windows 11, and banish Bing from the taskbar search field, amongst different helpful customization choices – however these have are available in purely due to rules within the European Financial Space. Home windows 11 customers within the US or different areas gained’t get the profit, which appears very unfair.

Home windows 11 bugs continued to frustrate all year long, too, and there have been some significantly cussed flaws that took a number of time to treatment, sapping the endurance of these affected. We’re considering primarily concerning the SSD slowdown debacle.

Home windows 11 adoption nonetheless struggled all through 2023 and a few of these points will should be tackled, we really feel, if that scenario is to vary. Then once more, with Home windows 10 having beneath two years of help left now, possibly Microsoft has obtained to the purpose the place it’ll simply wait issues out. (As famous, having Copilot as a central lure for persuading Home windows 10 customers to improve has gone out of the, er, window, in spite of everything).

Paper-thin Floor refreshes

As ever, Microsoft had its annual batch of Floor units, however for this yr, the launches have been rather more lowkey. We noticed the revelation of the Floor Laptop computer Go three and Floor Laptop computer Studio 2 in September (in addition to the Floor Go 4 – however that’s a tool Microsoft is focusing on at companies particularly).

The Floor Laptop computer Go three is a pleasant piece of {hardware}, however is let down by the unjustified worth hikes utilized contemplating the upgrades bestowed on the pocket book. As for the Floor Laptop computer Studio 2, that has rather a lot going for it by way of a heavyweight laptop computer, however once more, it’s critically expensive.

Total, Microsoft had a quiet and somewhat underwhelming yr on the {hardware} entrance, and there was no signal of what individuals needed to see – the Floor Professional 10.

Lastly finalizing that Activision Blizzard buyout

This was the yr that, after an entire lot of preamble – and fretting on Satya Nadella’s half, little question – Microsoft sealed the deal and at last acquired Activision Blizzard in October, with an entire heap of regulatory hurdles cleared.

At one level, it regarded just like the buyout wasn’t going to occur in spite of everything, however with some compromises from Microsoft on the cloud gaming entrance, the acquisition was lastly greenlit. A mere 20 months after the buyout was first introduced, so it solely took very almost two years to undergo.

Whether or not this can be a superb factor for the broader gaming trade, or not, is what we’ll be discovering out subsequent yr.

Concluding ideas

There have been some troublesome patches for Microsoft in 2023, not the least of which was beginning the yr by shedding some 10,000 jobs (about 5% of the workforce). Not an incredible foot to get off on.

It was additionally a quiet yr for {hardware}, and there was an unusually skinny line-up of latest Floor machines, with all of the noise – a deafening quantity of it – being round AI.

Nonetheless, regardless of the plain sources and big push behind synthetic intelligence, there’s nonetheless a number of work to be accomplished right here.

Copilot in Home windows should be absolutely realized into the imaginative and prescient of the all-singing-and-dancing AI we have been introduced with when Microsoft first talked enthusiastically concerning the desktop-based assistant. You recognize, the AI puppeteer pulling the strings of Home windows settings and making use of a number of tweaks in unison on the consumer’s bidding to make the OS a lot simpler to make use of.

Proper now, Copilot isn’t even 1 / 4 baked in comparison with that future imaginative and prescient, and if it takes too lengthy within the oven, the hazard is probably that it’ll be labeled with a fame that drags it down (who mentioned “Clippy” on the again?) and leaves people reaching for the off change.

Is there any actual hazard of that occuring, although? Most likely not the best way issues look, with Microsoft clearly focusing closely on AI now – and what’s attention-grabbing is the best way the general thrust of the corporate’s drive appears to have shifted extra in the direction of software program and away from {hardware}.

With Floor merchandise solid off to the sidelines in 2023, and an enormous push with AI and getting it into Home windows (11 and 10), Microsoft appears to have the sources allotted to comply with by and make Copilot one thing profitable – at the least in concept, anyway. 2024 goes to be a really attention-grabbing yr to look at unfold, that’s for positive, particularly if Home windows 12 arrives subsequent yr as rumored – maybe that OS can be the place Copilot actually spreads its wings.