Arguably, the most important secular tailwind to emerge since early last year has been the rapid adoption of artificial intelligence (AI). This is causing an ongoing paradigm shift in business as companies figure out how best to benefit from these next-generation algorithms.
What sets generative AI apart from its predecessors is its versatility. These AI systems can be used to generate images, create stories, summarize data, and create presentations, all with a few simple prompts. Additionally, its ability to find patterns in data and streamline rote and time-consuming tasks is being heralded as the "fourth industrial revolution" and could dramatically alter how business gets done. Managers everywhere are working to secure their share of the potential windfall.
Now, enterprise software and cloud titan Microsoft (NASDAQ: MSFT) and AI and data analytics pioneer Palantir Technologies (NYSE: PLTR) have joined forces to develop cutting-edge AI solutions for the U.S. government.
A dynamic duo
In a press release on Thursday, Palantir and Microsoft announced an expansion of their existing partnership to "bring some of the most sophisticated and secure cloud, AI, and analytics capabilities to the U.S. Defense and Intelligence Community."
The goal of the partnership is to create a "first-of-its-kind, integrated suite of technology" featuring Microsoft's Azure Cloud and OpenAI services and Palantir's Artificial Intelligence Platform (AIP) in the government's secure cloud.
By joining forces, Palantir will deploy Gotham, Foundry, Apollo, and AIP to Microsoft's Azure Government, Government Secret, and Top Secret Cloud platforms. Palantir will also adopt Azure's OpenAI service in these secure cloud environments.
The resulting integrated solution will allow government users to build AI systems for a variety of applications, including logistics, contracting, prioritization, action planning, and more.
What sets this agreement apart is the inclusion of Palantir's AIP. Management found that many users are reluctant to take the AI plunge because they simply don't know where to begin. The company began hosting boot camps or sessions that pair users with Palantir engineers to create these systems to solve real-world issues.
The program has been wildly successful, with many customers signing sizable contracts within days or weeks of attending a boot camp session. That strategy could work equally well for government users.