Technology giant Microsoft (NASDAQ:MSFT) is expanding the reach of its artificial intelligence (AI) tool, Copilot, beyond large enterprises. The company launched a new subscription plan called Copilot Pro, targeting individuals and small businesses. The new plan should attract more users for the company.
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Copilot Pro offers access to Copilot in Microsoft 365 apps such as Word and Excel, and priority access to the latest AI models, starting with GPT-4 Turbo. The Copilot app is now available for iOS and Android phones.
As Microsoft is expanding Copilot for Microsoft 365 to businesses of all sizes, it has lifted the previous restriction of a minimum of 300 people to purchase the enterprise version of the tool.
Competition Heats Up
Microsoft faces heightened competition from OpenAI’s ChatGPT and Alphabet’s (NASDAQ:GOOGL) Google. As a result, the company is expanding the reach of its AI tool to individuals and small businesses to catch up with the increasing competition in the AI space.
OpenAI launched ChatGPT Enterprise, the business version of its AI chatbot, in August 2023. The company said that businesses will have unlimited access to GPT-4 (its most powerful version of ChatGPT yet) and advanced data analysis. In addition, the new enterprise version will be up to two times faster than its current ChatGPT offering.
Further, Google introduced a series of AI-powered features and productivity tools across its portfolio of products last year. It also matched Microsoft’s $30/month pricing for enterprises.
Is Microsoft a Buy, Sell, or Hold?
Despite heightened competition, Wall Street is bullish about Microsoft stock. It has 36 Buy and one Hold recommendations for a Strong Buy consensus rating. MSFT stock has gained over 63% in one year. Analysts’ average price target of $429.15 implies 10.47% upside potential.
