Photo taken on August 13, 2014 shows the mugshot of XiaoIce's Sina Weibo account.[Photo/IC]

XiaoIce has been released in both China and Japan and has 40 million users. In China, XiaoIce acts as a Trainee Anchor for Dragon TV's 'Good Morning' Program -- the first time an AI has achieved this level responsibility and notoriety in the world.

Microsoft is now using what it has learned from XiaoIce's success in China to influence its bots and AI experiences in other parts of the world.

However, our investments in innovation are not solely about research and product breakthroughs for Microsoft.

Microsoft's business model is all about building a strong and broad ecosystem of innovative partners who build upon our technologies and platforms to deliver innovation of their own - and use it to grow substantial businesses with global reach.

In Shenzhen, for example, we work with more than 140 partners who are building Windows devices -- everything from tablets and laptops to drones and internet of things sensors.

They have delivered more than 300 devices that are sold in more than 75 countries and regions around the world since we started working with them, bringing more than 8 billion yuan in revenue back to Shenzhen.

5. What do you think of the opportunities and challenges facing your company amid recent traditional industry reform in China? How does your company fit into the national strategy of "Made in China 2025" and "Internet Plus"?

"Made in China 2025" and "Internet Plus" aim to update systems, connect internet of things devices and harness and leverage data to propel the transformation of the Chinese economy, making more efficient use of the flow of information, people and capital.

Microsoft brings a uniquely aligned combination of global experience, resources including talent and technologies to these ambitions.

We operate in China less and less like an international company with business in China, and more and more like a Chinese company with international ties and global ambitions – because that's exactly what our customers and partners are, and we are here to help people and organizations transform and achieve more.

Our mission, vision and ambitions translate into strategy in China under a single, guiding principle: everything thing that we do in China, we do with China, as part of China.

I believe that any organization in China that spends some time sharing their challenges with the Microsoft team will come away believing that we are the most capable digital transformation partner on the planet – not just for their challenges today but for the challenges they have not even imagined yet.