Microsoft (MSFT) is witnessing a growing number of customers signing up for and actively using its generative AI-based Copilot software, according to Jared Spataro, Microsoft’s corporate VP of AI at work. Spataro was talking to Yahoo Finance and stated that, based on this trend, it signaled that the tech giant’s substantial investments in AI are starting to pay off.
Microsoft’s Investments in AI Is Paying Off
In light of these developments, it is evident that the tech giant has been making significant investments into expanding AI across its Azure cloud offerings, productivity tools, and Windows operating system. These strategic investments are beginning to show tangible results.
Moreover, Spataro highlighted the significant gains in Copilot usage for Microsoft 365. He commented, “Last quarter, the number of Copilot for Microsoft 365 customers increased by more than 60%, which is great because we were already off to the races with that.” This increase demonstrates the growing adoption and impact of the technology.
Additionally, Spataro noted that the company was gaining momentum in adding users, with daily users having more than doubled. This impressive growth further underscores the success of Microsoft’s AI initiatives.
Transitioning from user numbers to organizational adoption, Spataro also pointed out that the number of 1,000-seat subscriptions for Copilot for Microsoft 365 has doubled, with major organizations such as Disney (DIS) and Dow (DOW) among the adopters. However, Microsoft has not disclosed exact figures for daily or monthly active users or the total number of Copilot licenses sold.
Why Is Copilot Proving to Be Successful?
The key to Copilot’s growing success lies in its ability to save enterprise users time on various tasks. Whether it’s shortening meetings, speeding up email management, or aiding in brainstorming sessions, Copilot is proving its value in enhancing productivity across organizations.
In addition, the tech giant’s growing focus on AI could also be fueled by recent financial results. In Microsoft’s most recent quarter, the company’s Intelligent Cloud segment revenue, which includes its Azure services, generated revenues of $28.5 billion. This figure fell short of Wall Street’s expectation of $28.7 billion, highlighting the ongoing challenges and opportunities in the cloud computing space.
Is Microsoft a Buy, Sell, or Hold?
Analysts remain bullish about MSFT stock, with a Strong Buy consensus rating based on a unanimous 31 Buys. Over the past year, MSFT has gained by more than 25%, and the average MSFT price target of $504.91 implies an upside potential of 22% from current levels.
