Microsoft Makes a $16 Billion Entry Into Health Care AI

When Microsoft CEO Satya Nadella spoke to investors Monday about his company's plan to acquire speech-recognition specialist Nuance for $16 billion, he emphasized the importance of artificial intelligence in health care. Nuance's software listens to doctor-patient conversations and transcribes speech into organized digitized medical notes. This helps explain the hefty price tag, even as voice recognition has become commoditized and now comes packaged with every smartphone and laptop. But Microsoft may also see much broader potential for Nuance's technology. Gregg Pessin, an analyst with Gartner, says the deal gives Microsoft "an entry point into the health care industry, and a huge customer base already running this stuff."