Microsoft just bought a conversational AI startup

• Is this a response to Google’s Duplex demo at I/O this year?
• Microsoft bought Semantic Machines, a Berkley-based startup.
  
• The technology will improve Microsoft’s Azure Bot Service and Microsoft Cognitive Services platforms.

Google's Duplex demonstration at I/O might have raised some eyebrows, but it also made a firm statement towards the future of AI. In fact, it could be one of the reasons why Microsoft just bought a conversational AI company called Semantic Machines.

The Berkley-based startup works on making chatbots sound more human, something all of the big tech giants have been working on. Microsoft will no doubt put the technology to use in making Cortana, its in-house voice assistant, more conversational as well.

However, the company also said that it will "establish a conversational AI centre of excellence in Berkeley" with this acquisition. That's likely an attempt on accelerating research going into the conversational AI platforms that Microsoft comes up with in future.

That said, while one could expect some impact on Cortana, given Microsoft's recent efforts, one could be sure that the company's focus will be more on enterprise products. That is probably why Semantic Products makes even more sense for the Redmond-based giant.

The company's website makes it pretty clear that it doesn't focus its efforts on consumer products. According to the website, Semantic Machines is more interested in businesses, e-commerce platforms, travel and more. All of that could easily fit with Microsoft's Azure Bot Service, which helps companies develop their own bots using Microsoft's technology. There’s also the Microsoft Cognitive Services platform, and the company says there are over a million developers who use this platform, while the Azure Bot Service has 300,000 developers at the moment.