12:27 PM EDT, 04/30/2024 (MT Newswires) -- Microsoft's ( MSFT ) collaboration with Conduent ( CNDT ) underscores the "unique AI leadership position" held by the software giant, Macquarie said in a report emailed Tuesday.

Conduent ( CNDT ) on Monday announced an initiative with Microsoft ( MSFT ) aimed at using the Azure AI platform to improve healthcare claims management, customer service, and fraud detection.

"We think Microsoft's ( MSFT ) AI strategy uniquely positions it as the ultimate adoption beneficiary," the Macquarie analysts said.

Since its January 2023 investment in OpenAI, the company has steadily advanced its AI deployment, moving from testing to broader availability, Macquarie said, adding that "we view this recognition by Conduent ( CNDT ) as significant, as it highlights the importance of safety to a successful initial AI deployment."

Microsoft's ( MSFT ) continued prioritization of its Azure platform has driven significant revenue growth, with Azure AI Services estimated at $4.1 billion in annualized run rate revenue, Macquarie said. Conduent ( CNDT ) plans to leverage Microsoft's ( MSFT ) Azure AI platform across three pilots, and notably will use dedicated instances of AI to protect Conduent's ( CNDT ) and its clients' data, the report said.

Macquarie has an outperform rating on Microsoft ( MSFT ) with a 12-month price target of $460.

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