Microsoft Forms New Team 'CoreAI – Platform and Tools' in AI Initiative

Microsoft has announced the formation of a new engineering team, as CEO Satya Nadella believes it is essential to address significant changes anticipated in software development processes and applications due to artificial intelligence (AI).

Nadella shared details about this structural revamp with Microsoft employees in a letter, which was made public recently. He emphasized that “we’re entering the next stage of this AI platform shift.”

He stated that the year 2025 will be pivotal for creating model-driven applications that could transform various application categories. Nadella compared the current transformation to previous major technical transitions, such as the introduction of graphical user interfaces and cloud-native databases, indicating that much change will occur over a few years.

The CEO expressed confidence that Microsoft aims to develop intelligent applications that possess memory and can take actions independently, enhancing their capabilities for improved performance and safety in various industries.

This focus on “agentic” software refers to a new type of AI application that can analyze relevant data and suggest actions autonomously. For example, Salesforce has already implemented agentic technology capable of engaging incoming sales leads through natural language interactions.

Agentic AI has the potential to function across various applications from different vendors, with real-world examples including its use in detecting fraudulent transactions and initiating necessary workflows.

Understanding Agentic Workflows

These agentic applications can drive workflows as they are connected through APIs to multiple applications. When fraud is suspected, the agent can communicate with other apps to address the situation, allowing humans to focus on more complex issues.

While it may seem like traditional software systems communicating with one another, the innovation lies in utilizing advanced neural networks to make decisions, moving beyond simple algorithms.

Nadella underscored that developing these AI-driven applications will require a new kind of app stack with unique user interface patterns and management tools. Microsoft plans for Azure to serve as the infrastructure supporting their AI initiatives, including developer tools like Azure AI Foundry and GitHub.

This shift in focus led to the creation of the “CoreAI – Platform and Tools” team, which will include members from Microsoft’s developer division and AI platform team, aimed at building an integrated AI stack for both internal and external clients.

The team will also oversee GitHub Copilot, which highlights the potential of agentic AI in automating code generation by analyzing existing software.

Nadella concluded his letter by emphasizing the importance of having a strong AI platform to achieve success and indicated there is much work ahead as Microsoft looks to seize unprecedented opportunities in this evolving landscape.

Microsoft, AI, technology