Microsoft will increase its use of artificial intelligence (AI) in order to improve the company's products, chief executive Satya Nadella said when revealing the tech giant's latest financial results. The company behind the Windows PC software reported revenue of 24.1 billion US dollars (£19.1bn) in the three months to December 31, up on the 23.8 billion dollars (£18.9bn) it generated in the same period last year, an increase driven by the firm's cloud-based products, Nadella said. Since taking over as chief executive in 2014, Nadella has shifted Microsoft's focus to its cloud business and software and away from hardware including smartphones. "Our customers are seeing greater value and opportunity as we partner with them through their digital transformation," he said of the latest figures, which also included 5.2 billion dollars (£4.1bn) in net income. "Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud."

If you care about money, the economy and corporate America, earnings season matters. Google parent Alphabet reported fourth-quarter earnings on Thursday. SAN FRANCISCO -- Google parent Alphabet topped analyst estimates with ongoing strength in mobile search and video advertising, but missed on earnings, sending shares down after hours. Alphabet reported fourth-quarter revenue of $26 billion, up 22% year over year, led by YouTube and mobile search, chief financial officer Ruth Porat said in a statement. But Alphabet missed on the bottom line, with net income of $5.33 billion, or $7.56 a share.

Google parent Alphabet reports fourth-quarter earnings after the close on Thursday. SAN FRANCISCO -- Google parent Alphabet is scheduled to announce third-quarter earnings after the market closes Thursday. REVENUE FORECAST: Analysts expect revenue of $25.18 billion, excluding payments to advertising partners, up 18% from the year-ago period. EARNINGS FORECAST: Earnings, excluding some items, are expected to increase to $9.61 a share. MADE BY GOOGLE: Google is not new to hardware but in the fourth quarter it launched a major line-up of devices including the Pixel phone and Google Home, the home speaker.

Earlier in the series, we discussed Microsoft's recent acquisition of Simplygon in the AR space. To move ahead in the AI space, Microsoft (MSFT) announced that it plans to acquire Maluuba, an AI (artificial intelligence) startup. AI is an umbrella term that encompasses natural language processing, machine learning, and robotics. AI enables sensing, prediction, analysis, and solutions for various IT (information technology) issues. Research and algorithm development for machine learning is Maluuba's strength.

Artificial intelligence (AI) on its own isn't enough to compete – companies need industry-specific solutions to business problems. So said Martin Schroeter, IBM's senior vice-president and chief financial officer, on the company's quarterly earnings call. Cognitive computing technology (IBM's term for AI) is just "table stakes," said Schroeter, claiming that his company is going the extra mile. IBM is building datasets for Watson to serve specific industries, including healthcare and finance. "You need more than public data or algorithms to solve real-world problems," Schroeter said.

Clear link found between AI adoption and business growth. Infosys has released its multinational research findings on the business impact of Artificial Intelligence, market maturity and expectations. A clear link has been shown to exist between a company's revenue growth and its AI maturity, with those reporting faster revenue growths more likely to be ahead in AI adoption. The report also found that AI is perceived as a long-term strategic priority in innovation. The majority of respondents, totalling to 85 percent, aim to train employees on the benefits and use of AI.

Nvidia (NASDAQ:NVDA) and Mercedes-Benz parent Daimler AG (OTCPK:DDAIF) (OTCPK:DDAIY) announced a partnership for AI powered Mercedes cars. These cars, which are expected to be available within the next year, will feature self-driving capability as well as an active driver assistance function called "Co-Pilot." Co-Pilot may well be the most intelligent human-machine interface ever devised. The announcement at CES of the Nvidia/Daimler partnership came only a day after Nvidia CEO Jen-Hsun Huang gave his keynote at CES. Since the announcement of the Nvidia/Tesla (NASDAQ:TSLA) partnership last year, the automobile industry has been waking up to the fact that the race to build the first commercially available self-driving car is all but won.

Artificial intelligence (AI) on its own isn t enough to compete -- companies need industry-specific solutions to business problems. So said Martin Schroeter, IBM Corp. (NYSE: IBM) s company senior vice president and chief financial officer, on the company s quarterly earnings call Thursday afternoon. Cognitive computing technology (IBM s term for AI) is just "table stakes," said Schroeter, claiming that his company is going the extra mile. IBM is building datasets for Watson to serve specific industries, including healthcare and finance. "You need more than public data or algorithms to solve real-world problems," Schroeter said.

Artificial intelligence (AI) on its own isn't enough to compete -- companies need industry-specific solutions to business problems. So said Martin Schroeter, IBM Corp. (NYSE: IBM)'s company senior vice president and chief financial officer, on the company's quarterly earnings call Thursday afternoon. Cognitive computing technology (IBM's term for AI) is just "table stakes," said Schroeter, claiming that his company is going the extra mile. IBM is building datasets for Watson to serve specific industries, including healthcare and finance. "You need more than public data or algorithms to solve real-world problems," Schroeter said.

IBM's chief financial officer, Martin Schroeter, made a bold statement on the future of technology on Thursday -- and he got some pushback. "The debate about whether artificial intelligence is real is over," Schroeter said, referring to IBM's cognitive computing platform, Watson. "And we're getting to work to solve real business problems." Katy Huberty, managing director at Morgan Stanley, challenged IBM on the topic during Thursday's earnings conference call. Huberty: "My other question is Watson: From the outside, it seems this business gets a pretty significant share of the press, but not contributing to revenue. Do you have visibility yet to when we can expect an inflection in revenue recognition from Watson? Or should we just not think about this as a contributing factor, or moving the needle in our models over the next couple of years? Schroeter: "....Watson is a silver thread.