Microsoft Corporation (NASDAQ:MSFT) is reportedly making significant strides in AI healthcare by recruiting former Alphbaet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google DeepMind staff.

What Happened Mustafa Suleyman, who co-founded DeepMind in 2010 and is now Microsoft's AI head, is spearheading this initiative, reported the Financial Times.

He has brought on board Dominic King, the ex-head of DeepMind's health unit, as vice-president of Microsoft's new AI health team in London.

Christopher Kelly, a clinical research scientist from DeepMind, has also joined the team, along with two other former colleagues from the AI start-up.

Microsoft's new consumer AI health division aims to leverage generative AI for health-related applications, addressing the growing trend of consumers seeking health information online.

Microsoft confirmed the establishment of its new unit in a statement to the report, underscoring the importance of health as a critical use case for responsible AI. "We continue to hire top talent in support of these efforts."

Microsoft did not immediately respond to Benzinga's request for comments.

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Why It Matters: The healthcare sector has emerged as a significant growth area in the ongoing AI boom.

According to a 2023 survey by Deloitte's Center for Health Solutions, involving 2,014 U.S. adults, over half (53%) of respondents believe generative AI could improve access to healthcare, while 46% think it holds promise for reducing healthcare costs.

Moreover, 48% of the people said they use generative AI chatbots like OpenAI's ChatGPT, Google Gemini, Microsoft Copilot, and Claude to ask for health-related help.

Meanwhile, Microsoft has been actively pushing the boundaries of AI. At its Ignite conference last month, the company unveiled over 80 product enhancements.

At the time, JPMorgan analyst Mark Murphy said that Microsoft is uniquely positioned in the market, infusing GenAI across both application and infrastructure stacks.

Microsoft's AI business is also on track to surpass a $10 billion annual revenue run rate, marking it as the fastest-growing segment in the company's history. CEO Satya Nadella highlighted the rapid adoption of AI across the company's product portfolio during its first quarter earnings call.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.