The US Air Force Test Pilot School and DARPA have successfully installed AI agents in the X-62A VISTA aircraft as part of the Air Combat Evolution (ACE) program, demonstrating that AI can be used safely in aerospace applications. Microsoft has launched Phi-3 SLMs, which are smaller language models that compete with or outperform GPT 3.5 across all benchmarks. Microsoft Research project VASA-1 generates realistic talking faces in real-time based on audio input. According to Gartner's survey of over 500 business leaders, only 24% are currently using or piloting generative AI tools, with the majority still exploring or evaluating the technology. Microsoft has also released COCONut, a modernized large-scale segmentation dataset that improves upon COCO in terms of annotation quality and consistency across segmentation tasks.