Microsoft’s (MSFT) New AI Chat Bot Tay Eyes Millennials

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Hoping to capture the essence of youth, Microsoft Corp. MSFT has developed a new AI chat bot named Tay who can converse with users in social media platforms.

On Wednesday, Microsoft’s research arm and Bing search engine business unit released Tay targeting 18 to 24 year-old millennials. Users will be able to chat with Tay on social media platforms like Twitter, Inc. TWTR, Facebook, Inc. FB Kik Messenger, GroupMe and Snapchat.

Designed to imitate linguistic mannerisms, Tay converses like a millennial and replies sensibly. She can engage in casual and playful conversations entertaining the younger generation chatting online. "The more you chat with Tay, the smarter she gets, so the experience can be more personalized for you," Microsoft wrote on Tay's about page.

Tay can track shared information such as nickname, gender, ZIP code, favorite food and relationship status and use this information to create a simple profile of the person she chatted with. The bot then learns from this data. The user can delete this profile or retain it for up to a year.

Tay comes on the heels of Xiaoice, another popular AI powered teenage chat bot launched by the company in China in May. Xiaoice currently converses with roughly 15 million Chinese on social media network Weibo.

In a blog post, Microsoft stated that Tay was built by drawing on public data, using AI and editorial developed by a team of improvisational comedians. The company will provide more details at Microsoft's Build conference next week.

On asked about her maker by a Twitter user, Tay cleverly replied, “Oh a team of scientists in a Microsoft lab. They’re what u would call my parents.”

Microsoft shares carry a Zacks Rank #3 (Hold). A better-ranked stock in the wider technology space is NetSol Technologies, Inc. NTWK as it carries a Zacks Rank #1 (Strong Buy).

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