Microsoft (MSFT) has reported a substantial increase in the adoption and usage of its generative AI-based Copilot software, signaling positive returns on its significant investments in artificial intelligence. The tech giant has been channeling billions into its AI initiatives, aiming to integrate the technology across its Azure cloud services, productivity software, and Windows operating system.
Jared Spataro, Microsoft’s Corporate Vice President of AI at Work, highlighted a notable 60% rise in the number of customers using Copilot for Microsoft 365 over the last quarter. “Daily users of Copilot have more than doubled, indicating strong engagement and effectiveness,” Spataro told Yahoo Finance.
Despite these promising signs, Microsoft’s most recent earnings report revealed a slight miss in expectations for its Intelligent Cloud segment, which includes Azure services. The segment generated $28.5 billion in revenue, falling short of the anticipated $28.7 billion, although it represented a 19% year-over-year increase. Following the earnings announcement, Microsoft’s stock experienced a dip, though it has since rebounded and is up approximately 1.5% over the past six months, compared to a 20% increase in rival Google’s stock (GOOG, GOOGL).
Microsoft’s Copilot software has gained traction among large enterprises, with significant organizations such as Capital Group, Disney, Dow, and Novartis expanding their 1,000-seat subscriptions. While exact figures on daily or monthly active users and license sales were not disclosed, the company emphasized Copilot’s effectiveness in enhancing productivity.
Spataro noted that customers like Lumen and Cognizant have reported substantial time savings and productivity gains. Lumen’s employees are saving an estimated four hours per week using Copilot, translating to $50 million in annual savings, while Cognizant has observed a 10% reduction in time spent on emails and a 27% increase in early meeting closures.
Microsoft continues to focus on demonstrating how its AI investments are translating into tangible benefits for enterprise users.
