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AI at work

Microsoft folded its consumer Copilot into one work app. Two years of effort ended.

Microsoft has merged its consumer Copilot into its workplace Copilot, creating one app aimed at companies, Bloomberg reported on 25 September.

ERP LEADERS news desk · · First reported by Bloomberg via PYMNTS · Edition no. 19
Photo: Coolcaesar/Wikimedia, CC BY-SA 4.0 · original

The move ends a two-year effort to build a personal AI companion. OpenAI, Google and Meta remain in that market, Bloomberg wrote.

"We're not going to build a Copilot that's like your personal companion," a Microsoft executive who runs Copilot's workplace features told Bloomberg.

The commercial logic starts with Microsoft's installed base. Microsoft 365, its office software, has about 450 million commercial seats. Fewer than 7% carry a Copilot licence at $30 per user per month, PYMNTS reported, citing Bloomberg.

The billing model changes too. Cowork and Code move to usage-based billing. Autopilot does too, along with access to the most advanced models, CIO.com reported. Chat and Microsoft 365 Copilot stay on subscription. "Two employees with the same Copilot license...could generate very different AI costs," Avasant analyst Abhishek Satapathy told CIO.com.

Microsoft says it is "holding a very high bar" on the quality of what Copilot produces.

How will you budget for Copilot when two people on the same licence run up different bills?

Sources

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Companies in this story
Microsoft

Our file on Microsoft

  1. 8 OctFiled later

    Microsoft 365 reached 5,000 Dutch tax staff. Then the government stopped the move.

  2. 7 OctFiled later

    Games Workshop hoped for new finance software in 2020. Its old systems still run.

  3. 6 OctFiled later

    Microsoft planned $1 billion for employees using Claude. Then it cut over a third.

  4. 4 OctFiled later

    Microsoft started blocking a mailbox link apps used since 2007. No exceptions from April.

  5. 29 SeptFiled later

    NVIDIA launched a safety net for AI agents. Microsoft and JPMorgan already use it.

All 26 Microsoft stories

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