Microsoft Overhauls Copilot AI Tool, Shares Rise
On Friday, Microsoft announced a major update to its Copilot artificial intelligence tool, which led to a more than 4% rise in the company's stock. The overhaul includes integrating existing features like Chat and Cowork into one app, adding new functionalities such as Code for non-technical users and Autopilot for task automation. CEO Satya Nadella emphasized that this is the biggest update yet to Copilot. The updated pricing model shifts from a flat fee to usage-based billing for advanced features while keeping basic functionality affordable. Microsoft's strategy appears focused on enterprise customers rather than competing in the consumer AI chatbot market, where it has faced criticism for lagging behind competitors like Anthropic and OpenAI. Analysts at Piper Sandler praised the update as potentially positioning Copilot as a 'super app' interface to AI. Despite rising bond yields due to inflation concerns, Microsoft's stock outperformed both broader indices and its software peers. The company remains one of the top performers in Friday’s session among tech stocks.
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