Imagine a future office where computers run on artificial intelligence take care of the most laborious administrative tasks, making employees happier and more productive. Microsoft Corporation wants to be at the forefront of that future – and its deal for voice-recognition and AI specialist Nuance Communications Inc. shows that it is willing to spend a lot of money to do this.
Microsoft said Monday that Nuance Communications Inc. Agreed to buy the stake for $ 56 or nearly $ 20 billion, including debt. At first glance, this may seem like a strange candidate to become Microsoft’s second largest acquisition after a $ 26 billion deal for LinkedIn Corp. Over the past decade, Nunes sales have stagnated as an early pioneer of speech-recognition products. Can’t invent fast enough. But that has changed. Depending on the impressive technology and efficiency in its latest AI solution for health care, it makes sense to buy the nuance.
The game-changing product is the Nance Dragon Ambient Experience or DAX, released in February 2020. Pre-submissions force physicians to use equipment to transcribe notes, and then spend hours at the end of the day filing paperwork, the administrative burden that DAX takes from their plate. During each visit, the system records voice conversations between physicians and patients, and then influences AI to find the right context for the discussion and automatically creates detailed clinical documentation for review. All the doctor has to do is sign off. At least for doctors, AI-powered Panacea seems to be here now.
Hospitals like it. They get happier doctors, they can see more patients and the risk of clinical mistakes is lower. Citing a survey, doctors reported that fatigue and tiredness dropped from 72% to 17% with DAX use. Doctors say it also allows for higher quality care as it can focus on treating patients without data entry. Enthusiasm reached investors. During Nance’s recent revenue call, almost every question from Wall Street touched DAX’s prospects. Although the use of DAX is still in its infancy, the financial future looks bright. Earlier this year, revenue from DAX was expected to reach $ 15 million by 2023 or $ 250 million from this year, with growing interest from current and new customers.
The Microsoft-Newans combination will increase the scope for growth, allowing Microsoft’s heft for a big roll out. There are other synergies. DAX, which is already using Microsoft’s cloud-computing service Azure, and the technology giant could further integrate into the services to create a more powerful offering of benefits from its AI technologies in a strategic partnership signed in 2019. Most critically, Microsoft learns all the intimate details on how to best develop advanced AI solutions for the office that apply to other industries.
On the one hand, however, Microsoft must proceed with caution. No other technology company has done active shopping for big companies. In late March, Bloomberg reported that Microsoft was in talks to buy the gaming chat community Discord Inc. for more than $ 10 billion. This follows the completion of the $ 7.5 billion acquisition of video-game publisher Genimax by Pinterest Inc. in recent months. Known to be considered. Last year Microsoft attempted to acquire TikTalk’s US operations. While many big deals can catch the attention of regulators, they may eventually wonder if the same antitrust scrutiny now given to giants like Facebook Inc. and Alphabet Inc. applies to Microsoft as well.
At this point, if Microsoft can get a nuance without causing itself too much trouble, it will add the expertise needed to lead to the next big disruptive innovation. This is a valuable profession.
This story was published from the Wire Agency feed without any changes to the text.