Microsoft Boosts Conversational AI with $19.7 Billion Nuance Deal

… much greater scale, which partners will also enable.

“Our partner ecosystems will be able to build differentiated solutions leveraging both Microsoft and nuance capabilities,” he said. “Whether working with leading EHR providers like Epic and Cerner, or leading partners and other industries, Microsoft field and distribution channels will enable us to reach new customers in new segments and geographies, broadening the reach of Nuance’s technologies beyond the United States.”

Nuance’s Transformation: Enterprise AI and Health Care

During the past three years, Nuance has transformed its business and portfolio, Benjamin noted. Nuance has focused its technology on the cloud, with an emphasis on enterprise AI and on the health care industry.

“Clinicians, administrators and care teams in health organizations face challenges that multiply and intensify every year, making it increasingly difficult for providers to deliver consistently high-quality care,” Benjamin said. “Clinician burnout, declining patient satisfaction, increased financial pressures, growing administrative demands and obstacles to effective care delivery have had profound repercussions on patient care.”

The pandemic has made the issue that much more acute, he added.

Since forming their partnership in 2019, Microsoft helped Nuance develop a solution designed to capture conversations between patients and physicians. Nuance released Dragon Ambient eXperience (DAX), designed to helps contextualize those conversations for various purposes. For example, organizations can automate how information gets added to electronic health records (EHRs).

Benjamin said he believes the acquisition will benefit both companies and its respective stakeholders.

“Formally joining forces will amplify our ability to deliver products that shape the future of work help solve health care’s most pressing challenges and bring compelling value to our customers,” Benjamin said. “And with Microsoft’s cloud infrastructure, we can get our solutions into doctors’ hands even faster.”

Likewise, Benjamin believes Nuance will help advance Microsoft’s cloud strategy.

“Together, we will be able to address these and more opportunities to significantly accelerate the application of AI and speech recognition, natural language processing and intelligent engagement across industries,” he said.

Nitish Mittal, VP of technology at Everest Group, shares that view.

Everest Group’s Nitish Mittal

“The acquisition of Nuance represents the next move for Microsoft in its journey toward industry-based cloud solutions,” Mittal said.

It is noteworthy, that Benjamin will report to Guthrie, Mittal added.

“There will be natural adjacencies for Microsoft to pursue full-stack opportunities,” he said.

Biometric Security Expertise

Microsoft officials also noted that Nuance has advanced voice biometrics capabilities that provide voice authentication and fraud prevention. Nuance said its biometric services authenticate 8 billion activities annually, and 31 billion customer interactions pass through its solutions.

“Nuance’s biometric security expertise can bring new capabilities to solutions like Dynamics 365 Fraud Protection, enabling true omnichannel, end-to-end fraud protection for businesses and individuals alike,” Guthrie said.

Microsoft CFO Any Hood said the deal should close by year’s end, pending shareholder and certain regulatory approvals.