In a data-laden world where the operating system is of least importance to any software maker be it Google or Microsoft. Although operating systems play a crucial role in bringing consumers to the companys’ respective services. At Google IO event the company showed us how capable an AI can be with the announcement of Google Duplex.

The software giant is also trying to achieve what Google has already built but Microsoft’s vision is much more border, beyond the Digital Assistant.

Microsoft’s hegemony over this AI first cloud first world gets more practical with the company’s recent acquisition of Semantic Machines. The acquisition will help Microsoft to build more context-sensitive AI scaffolding of bots and digital assistant. Microsoft calls this conversational AI. Semantic Machines is a startup founded by a team of entrepreneurs and researchers which aims to sort of perfect the natural language processing, speech recognition and of course AI.

“We are excited to announce today that we have acquired Semantic Machines Inc., a Berkeley, California-based company that has developed a revolutionary new approach to building conversational AI. Their work uses the power of machine learning to enable users to discover, access and interact with information and services in a much more natural way, and with significantly less effort,” wrote David Ku, CVP and chief technology officer of Microsoft AI and Research in a blog post.

Microsoft is also developing conversational AI with digital assistant Cortana and as well as social chatbots like XiaoIce.