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Microsoft has postponed a significant AI update for its 365 software suite, which includes popular applications like Word and Excel. The decision comes after CEO Satya Nadella and his team evaluated options for integrating AI features, particularly the Copilot tools powered by OpenAI's models. Instead of moving forward, the company will conduct pilot tests to gauge customer willingness to pay for these features.
This cautious approach reflects concerns about the value of AI tools in driving software license purchases. Microsoft is also exploring a new security-focused software suite while facing pressure to justify its substantial investments in AI infrastructure. Customer feedback has highlighted dissatisfaction with the costs associated with Copilot, leading to some cancellations of the service.
• Microsoft pauses AI integration in 365 software amid customer concerns.
• Pilot tests will assess customer willingness to pay for AI features.
These tools are powered by OpenAI's GPT models and are central to Microsoft's strategy for integrating AI into its products.
Microsoft's Copilot is an example of generative AI, as it assists users in generating text and summarizing information.
Microsoft is investing heavily in AI infrastructure to support its Copilot tools and other AI initiatives.
The company is currently focusing on integrating AI into its offerings, particularly through its Copilot tools.
Its technology powers Microsoft's Copilot tools, which are integral to the company's AI strategy.
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