July 9 (Reuters) - Microsoft ( MSFT ) 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% 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 ( MSFT ) 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% of the code for new products, accelerating

launch times, Althoff said, according to the report.

Microsoft ( MSFT ) did not immediately respond to a Reuters request

for comment.

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.

(Reporting by Juby Babu in Mexico City)