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    Lessons from Chinese AI Firms on Owning Customers’ Habits

    As U.S. AI firms compete in an escalating race for superior models, bigger benchmarks, and more advanced features, Chinese companies are pursuing a fundamentally different strategy: embedding AI into users’ everyday habits. The authors argue that this “habit moat” approach may prove more durable than competing on raw capability alone. Whereas Western firms position AI as a destination consumers consciously visit, companies like Alibaba integrate AI into existing routines such as shopping, payments, food delivery, and travel booking, reducing friction until using AI becomes automatic behavior. Once AI capabilities become “good enough,” marginal technical improvements matter less than becoming the default path through recurring customer tasks. The authors outline four strategic imperatives for Western leaders: focus on behavioral cues rather than feature gaps, subsidize customer behavior instead of subscriptions, embed AI invisibly into existing workflows, and optimize for repeat usage rather than first-time adoption. The central warning is stark: AI may not replace employees first—it may instead capture the critical customer moments businesses currently own.

    Bitcoin vs Ethereum: Which crypto asset could deliver better returns in the next 12 months?

    AI is the clearest example. It raises the prospect of a permanent growth breakout, accelerating innovation itself and compressing decade long timelines into a few years

    Microsoft shares rise after Azure sales disclosure; AI cloud growth in focus

    Microsoft has disclosed Azure’s quarterly and annual revenue for the first time, giving investors a clearer view of its position against Amazon Web Services and Google Cloud amid rising AI infrastructure demand. Azure reported $29.4 billion in quarterly sales and $101.9 billion for fiscal 2026, while Microsoft also unveiled a new two-segment reporting structure.

    Microsoft reveals Azure cloud sales in financial reporting shift

    Microsoft said that Azure had $29.4 billion in sales in its most recently ended quarter and $101.9 billion in sales in its most ⁠recent ⁠fiscal year ended June 30. The figures place Microsoft behind Amazon, whose cloud sales were $42.2 billion in its most recent quarter, but ahead of Google, which reported $24.8 billion in cloud sales in its most recent quarter.

    Oyo parent PRISM closes FY26 with 50% revenue growth, reports PAT of Rs 994 cr

    PRISM operates a single technology-enabled platform across more than 35 countries, with technology and product engineering, pricing and revenue management, reservations, customer support, finance, marketing operations and procurement largely built and run from India.

    Italy regulator probes Microsoft over 'Microsoft 365' price hike

    Italy's antitrust watchdog has launched a probe into Microsoft for alleged unfair practices concerning its Microsoft 365 subscription price increase. The regulator claims consumers weren't properly notified about the integration of AI tools like Copilot and Designer. Customers were automatically shifted to pricier plans without sufficient information to make informed renewal decisions, potentially limiting their choices.

    The Economic Times
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