Microsoft to sell Copilot software to largest companies from November 1

Microsoft has announced that its artificial intelligence powered software Microsoft 365 Copilot will be available for purchase for the largest of its clients starting on November 1, 2023. CNBC reported on the development on Thursday.

The tech giant’s announcement follows the company’s offering of Microsoft 365 Copilot for preview to a small group of businesses. Companies can tap into Copilot for tasks involving Word files, PowerPoint presentations or for a quick search for information from emails.

Corporates to pay for Copilot AI tools

According to Microsoft’s finance chief, the move to monetize the AI tool aligns with the gradual adoption of AI services across the world. However, the business side of the venture might only reflect on the financial results of the second half of its current fiscal year. For Microsoft, the current 2024 fiscal year ends in June of 2024.

Even then, selling the AI software is expected to expand Microsoft’s revenue from the software, with office applications accounting for 24% of the company’s total revenue. The company recorded a 16% growth in the section for the fiscal fourth quarter.

Microsoft revealed that over 600 large organizations had signed up for a paid early-access offering of Copilot. That number was as of May this year and saw an update in July that priced monthly access to $30 per person. The charges were in addition to costs users pay to use Microsoft 365.

AI is a big narrative today, and Microsoft’s foray into the space has come with a major collaboration with OpenAI, the startup that released the chatbot ChatGPT. Other than making a massive investment in OpenAI, Microsoft also relies on the startup’s GPT-4 large language model (LLM).

Microsoft’s push to have large organizations and companies pay a monthly fee comes after industry rival Google began charging users for its Duet AI. The AI tool is for Google Workspace, and launched for enterprises at $30 per person in August.

Elewhere this week, Morgan Stanley unveiled its AI assistant for financial advisor, beating the likes of Goldman Sachs and JPMorgan to the launch. The two banking giants are also exploring use of AI in financial services.