Microsoft bringing more AI technology to its productivity software

Microsoft (MSFT) is pouring more of its AI-powered Copilot technology into its Microsoft 365 productivity products, including Excel, PowerPoint, Outlook, and Teams. The updates, which include the ability to use Copilot to draft PowerPoint presentations and a feature that prioritizes your emails in Outlook, are a part of what the tech giant refers to as its Copilot Wave 2 rollout.

In addition to the improvements to its Microsoft 365 apps, Microsoft also announced a new collaborative tool called Copilot Pages, which lets teams of workers access, edit, and manipulate data on a single page using information pulled from Copilot.

AI capabilities are about to be integrated

The company introduced a new agent builder feature, allowing users to effortlessly create Copilot-powered agents—AI assistants designed to automate and streamline business processes. Shares of Microsoft (MSFT) are climbing in pre-market hours after the tech giant's board approved a $60 billion share buyback program and agreed to raise the dividend by 10% to $0.83 per share as of November 21.

These developments are part of Microsoft’s larger strategy to integrate AI capabilities across its extensive range of business software. This effort aims to outpace competitors like Google and Salesforce while capitalizing on its significant investments in AI technology.

Charles Lamanna, Microsoft’s corporate vice president, emphasized that different companies, like Disney and Novartis, have unique needs in utilizing Copilot, reflecting their distinct data sources and workflows. This is where the agent builder proves valuable, enabling tailored solutions, like helping new employees navigate health benefits by directing them to relevant documents.

60% increase in Copilot users

Microsoft reports a more than 60% increase in Copilot users quarter over quarter, with daily usage at work doubling. Notably, Vodafone is acquiring 68,000 Copilot licenses for its 100,000 employees after discovering the software saves workers an average of three hours weekly.

The new Copilot features in Microsoft 365 apps aim to enhance efficiency, such as tracking meeting transcripts and quickly adding references to documents. The Copilot agent builder in Copilot Studio allows companies to create customized AI-powered agents with minimal technical expertise.

Analysts believe that connecting popular Office software with OpenAI's AI models distinguishes Microsoft's products in the market from competitors, including OpenAI's own products. Last week, OpenAI released the new model ChatGPT-o1, which can perform certain tasks similar to human reasoning, and Microsoft stated that it will integrate this technology into its own products at some point in the future.

Microsoft to Raise $30 Billion for AI Investments

Microsoft's revenue increased 15% year over year in the fiscal fourth quarter, which ended on June 30, according to a statement. The companies, along with the United Arab Emirates’ MGX investment vehicle, will seek $30 billion of private equity capital over time for the strategy, which will then leverage the money to as much as $100 billion in potential investments, the companies announced Tuesday.

“The need to build out data centers globally is multi-trillions of dollars to finance,” BlackRock Chief Executive Officer Larry Fink said in an interview, adding that the Global AI Infrastructure Investment Partnership has been months in the making. “This is just a great example of the capital markets building out infrastructure and building out the opportunities and new technologies.”

The companies stated that infrastructure investments, including energy projects, will primarily take place in the US, with some funds allocated to partner countries. The plan involves attracting additional investors, as pension funds and insurers are keen on long-term infrastructure opportunities, according to Fink.