Is Microsoft’s AI Collaboration the Closest Thing to Human Intelligence?

AI is getting a brain transplant, sort of. In a move that could shake up industries from Wall Street to warehouse robotics, Microsoft has teamed up with Swiss AI startup Inait to develop an artificial intelligence system that mimics human reasoning. We’re talking about AI that doesn’t just predict or pattern-match but thinks through problems like a human brain. This isn’t just another Big Tech partnership, it’s a revolution. By blending neuroscience with machine learning, the technology conglomerate and Inait are moving AI into its next evolutionary phase. But how did we get here, where are we now, and what’s coming next? Let’s break it down.

AI’s Long Road to Reasoning

Since the 1950s, researchers have been working on replicating human intelligence in machines. But so far, AI has been more of a statistics whiz than a deep thinker. Early AI logic relied on rigid, rule-based systems, think primitive chatbots that followed strict scripts. Useful? Sure. But adaptable? Not so much. These systems could not learn or handle new information on their own. There Neural networks took AI to the next level, allowing it to recognize patterns, analyze vast amounts of data, and even generate text and images. Deep learning models like OpenAI’s GPT-4 supercharged this ability, but these models don’t truly understand what they process. They just crunch numbers really well. Enter the tech giant and Swiss startup. Their mission? Build AI that doesn’t just predict—but reasons.

The Here and Now

Microsoft has been developing in-house reasoning models, known internally as MAI models, to reduce its reliance on OpenAI. These models, already being tested in Microsoft’s Copilot, perform nearly as well as OpenAI’s and Anthropic’s leading models. The Information reports that the tech giant is considering launching these MAI models later this year as APIs, positioning the company as a direct competitor to OpenAI.

Inait’s AI model is based on two decades of digital neuroscience research. Its co-founder, Henry Markram, spent years developing biologically accurate digital replicas of mammalian brains—starting with mice. Now, that same research is fueling AI that can learn from real-world experiences rather than just crunching pre-existing data. Adir Ron, Microsoft’s AI lead for startups, says Swiss AI startup is "creating a new paradigm in AI, moving beyond traditional data-based models to digital brains capable of true cognition.

Why This AI is a Big Deal

• Thinking Like Humans: Instead of just spotting patterns, this AI can analyze complex situations, make decisions, and adapt in real time.
• Smarter AI for High-Stakes Industries: Finance and robotics need AI that can think through uncertainty, not just rely on past data.
• Less Data, More Intelligence: A brain-inspired model could achieve intelligence with far less data, making AI faster, cheaper, and more scalable.
• More Energy-Efficient AI: Unlike traditional deep learning models, brain-inspired AI uses less energy and learns faster, a major step toward sustainability.

And Microsoft isn’t wasting time, the first wave of applications is already taking shape.

The First Test Runs

Microsoft and the AI startup are targeting two industries where reasoning AI can make an immediate impact: 

Smarter Trading and Risk Management

Traditional AI models in finance rely on statistical probabilities, which struggle with black swan events, and market shifts that come out of nowhere. A reasoning AI could:

• Spot risks that go beyond historical trends.
• Predict economic movements with deeper, more nuanced analysis.
• Detect fraud by understanding intent, not just flagging anomalies.

Machines That Adapt in Real Time

Today’s robots are great at repetitive tasks but struggle with unpredictability. A reasoning AI could:

• Help robots make real-time decisions in factories, hospitals, and warehouses.
• Adapt to unexpected obstacles instead of freezing up.
• Improve interactions with humans by understanding context and intent.

Microsoft’s Azure cloud platform is key to scaling these capabilities across industries, allowing businesses to deploy reasoning AI without needing supercomputers.

Is This the Path to AGI?

We’ve all heard the buzz about Artificial General Intelligence (AGI), AI that can think, learn, and reason at a human level. So, does this mean we’re getting close? Not quite. AGI is still a distant goal. But Microsoft and Inait’s work is a step in that direction. The move from pattern-matching AI to reasoning AI is a big deal, and it’s going to shake things up.

What’s Next?

• AI’s Expansion Beyond Finance and Robotics: If this tech delivers, expect reasoning AI to spread into healthcare, legal analysis, and even creative fields.
• AI That’s More Intuitive and Adaptive: Future models could anticipate human needs, troubleshoot problems in real time, and become trusted co-workers rather than just tools.
• Other Players Entering the Race: OpenAI, Anthropic, and DeepSeek are all developing hybrid reasoning models, showing that the competition in this space is heating up.
• Ethical Dilemmas on the Horizon: As AI starts reasoning more like humans, concerns about bias, accountability, and safety will grow. Policymakers and tech leaders will need to set clear rules to keep things in check.

Final Thoughts

While Microsoft is making significant strides in AI and investing in cutting-edge technology, it still faces challenges beyond the tech world. A Michigan Tax Tribunal judge recently ruled that Microsoft’s $1.5 million income tax dispute will require a trial due to unresolved questions about asset ownership and tax amounts. While Microsoft advances AI, its business dealings remain complex and under scrutiny. Will AI ever fully think like us? That remains to be seen. But one thing’s for sure—we’re entering a world where AI isn’t just following orders, but figuring things out on its own. So, are we ready for AI that thinks like us? Let’s talk.