Microsoft acquires conversational AI and bot development firm

San Francisco, Nov 16  Microsoft has announced to acquire a conversational Artificial Intelligence (AI) and bot development company XOXCO for an undisclosed sum.

Texas-based XOXCO has been paving the way in conversational AI since 2013 and was responsible for the creation of Howdy, the first commercially available bot for Slack that helps schedule meetings.

"It also developed Botkit which provides the development tools used by hundreds of thousands of developers on GitHub. Over the years, we have partnered with XOXCO and have been inspired by this work," said Lili Cheng, Corporate Vice President, Conversational AI at Microsoft on Thursday.

Conversational AI is quickly becoming a way in which businesses engage with employees and customers -- from creating virtual assistants and redesigning customer interactions to using conversational assistants to help employees communicate and work better together.

According to Gartner, "by 2020, conversational artificial intelligence will be a supported user experience for more than 50 percent of large, consumer-centric enterprises".

The Microsoft Bot Framework, available as a service in Azure and on GitHub, today supports over 360,000 developers.

"With this acquisition, we are continuing to realise our approach of democratising AI development, conversation and dialog, and integrating conversational experiences where people communicate," said Cheng.

Over the last six months, Microsoft has made several strategic acquisitions to accelerate the pace of AI development.

The acquisition of Semantic Machines in May brought a revolutionary new approach to conversational AI.

In July, it acquired Bonsai to help reduce the barriers to AI development by combining machine teaching, reinforcement learning and simulation.

In September, Microsoft acquired Lobe, a company that has created a simple visual interface empowering anyone to develop and apply deep learning and AI models quickly, without writing code.

"The acquisition of GitHub in October demonstrates our belief in the power of communities to help fuel the next wave of bot development," Microsoft said.