Home tech-portals Microsoft Microsoft's Copilot Sees Surge...
Microsoft
Business Honor
28 August, 2024
Major organizations such as Capital Group, Disney, Dow, and Novartis have expanded their Copilot subscriptions
Microsoft (MSFT) is witnessing a significant uptick in the adoption of its generative AI-based Copilot software, signaling that its substantial investments in artificial intelligence are beginning to pay off. The company has reported a 60% increase in customers for Copilot for Microsoft 365 in the last quarter, with daily users more than doubling.
The remarkable surge was emphasized by Jared Spataro, Microsoft's corporate vice president of AI at work, who said that the increase in usage intensity indicates that the software has gained traction among businesses. Major organizations such as Capital Group, Disney, Dow, and Novartis have expanded their Copilot subscriptions, with the number of 1,000-seat licenses doubling. However, Microsoft has not disclosed specific figures for daily or monthly active users. Despite the positive traction for Copilot, Microsoft’s latest earnings report revealed a slight shortfall in its Intelligent Cloud segment revenue, which includes Azure services. The $28.5 billion reported fell short of Wall Street’s $28.7 billion forecast, causing a brief dip in stock price. Nevertheless, Microsoft’s shares have rebounded and are up about 1.5% over the past six months, outperforming Google’s (GOOG, GOOGL) stock, which has risen more than 20%.
The success of Copilot is attributed to its ability to enhance productivity, with users reporting significant time savings. Networking firm Lumen estimates a $50 million annual savings from a four-hour weekly reduction in work time, while Cognizant has observed a 10% decrease in email handling time and a 27% increase in early meeting endings.