Microsoft launches Copilot AI features as investors look for signs artificial intelligence is paying off

Microsoft is actively working to monetize its significant investments in artificial intelligence through a range of software offerings aimed at both enterprises and consumers. The company’s latest initiative, announced during its AI Tour event in London, focuses on “autonomous agents.” These custom-built AI applications are designed to handle specific tasks for enterprise workers, thereby freeing up employees to concentrate on other projects. Notable companies like McKinsey & Company and Pets at Home have successfully implemented these agents to reduce time spent on repetitive tasks, such as data entry and processing client proposals.

The autonomous agents can be created using Microsoft’s Copilot Studio, which allows users to build their own agents with low-code or no-code instructions. Users simply define the agent’s purpose, such as sorting through incoming email requests, and provide natural language commands to guide its actions. This user-friendly approach enables employees to set the parameters for the agent’s tasks without needing programming skills. Furthermore, Microsoft has incorporated features that allow users to verify the agent’s work and address any inaccuracies or errors generated by the AI.

Microsoft’s investment in AI is part of a broader strategy to secure returns on its substantial expenditures, which reached $19 billion in capital expenditures in its most recent quarter. This investment is primarily directed toward AI and cloud-related initiatives, contributing to a total of $55.7 billion in capital expenditures for fiscal 2024. The company aims to leverage its AI-powered Copilot platform to boost revenue by enhancing worker efficiency in various business applications. Currently, 2.1 million users engage with Copilot each month, a figure Microsoft is eager to increase.

As the AI sector continues to expand, Microsoft faces competition from other tech giants like Google and Salesforce, who are also working to capitalize on the AI boom. Google is integrating more features into its Gemini for Google Workspace platform, while Salesforce is launching its own AI offerings and Einstein Copilot. With the earnings season underway, Microsoft and its competitors must demonstrate continued customer growth in their AI services to maintain investor confidence and avoid backlash.