AdvertisementAdvertisementBusinessFILE PHOTO: Microsoft logo is seen in this illustration taken February 16, 2025. REUTERS/Dado Ruvic/Illustration/ File Photo10 Jul 2025 02:45AM (Updated: 10 Jul 2025 02:58AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInRead a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST Microsoft saved more than $500 million in its call centers alone last year by using artificial intelligence, Bloomberg News reported on Wednesday.The tech giant last week announced plans to lay off nearly 4 per cent of its workforce as it looks to rein in costs amid hefty investments in AI infrastructure. In May, the company had announced layoffs affecting around 6,000 workers.AI tools were helping improve productivity in segments from sales and customer service to software engineering and the company has begun using AI to handle interactions with smaller customers, Microsoft's Chief Commercial Officer Judson Althoff said during a presentation this week, according to the Bloomberg News report.The nascent effort was already generating tens of millions of dollars, the report said, citing a person familiar with his comments.AI generated 35 per cent of the code for new products, accelerating launch times, Althoff said, according to the report.Microsoft declined to comment when contacted by Reuters.The Windows maker has earmarked $80 billion in capital spending this fiscal year, with most of it aimed at expanding data centers to ease capacity bottlenecks for artificial-intelligence services.Big tech companies have been spending heavily on AI as they view the new technology as a major growth engine, while slashing costs elsewhere to safeguard profits.Source: ReutersNewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST