The new agreement will allow Telefónica's networks to be combined with the Microsoft Azure AI platform to design the services that telcos will offer in the future.

Together, the two companies will expand the use of Azure Cognitive Services in both customer relations and business processes, create new AI-powered home experiences, and explore the use of smart technologies to transform networks.

Currently, Azure Cognitive Services powers Aura, which is integrated across multiple channels, including mobile apps, the company's pay-TV service, and call centers in Brazil. This new partnership will explore expanding Aura and Cognitive Services to customer service channels, such as call centers in other countries, as well as social media and web services, and other channels targeting employees and suppliers.

Microsoft and Telefónica will explore working together to identify opportunities using AI and other disruptive technologies such as blockchain, 5G, and edge computing to transform services and build the networks of the future. The two companies will collaborate on creating a working group to study the application of AI and machine learning to optimize networks, reduce costs, and consequently drive the transformation of the entire sector. Together, they will develop proof-of-concept projects to demonstrate how these solutions can be adapted to predictive network provisioning, capacity demand, and other use cases.

As a result of this working group, Telefónica and Microsoft will implement an intellectual property model based on Microsoft's Shared Innovation Initiative. As customers advance in their business transformation, this initiative is based on a set of principles designed to provide clarity and confidence regarding the co-creation of technology and intellectual property with Microsoft.

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