Microsoft Exec Reports Stronger Copilot Sales Amid Investor AI Concerns

A senior Microsoft executive told staff this week that sales of its premium AI add-on, Copilot, have gained momentum, addressing recent scrutiny over its adoption pace. Judson Althoff, who leads Microsoft's commercial business, shared the update during an internal town hall.

The context is a challenging period for software stocks, with Microsoft shares down significantly in the first quarter. Investors are weighing the massive costs of building AI infrastructure against the promise of new revenue. The central question: when will AI-enhanced products like Copilot meaningfully boost the bottom line?

Microsoft 365 Copilot, a $30 monthly addition to business subscriptions, launched broadly last year. While the company reported 15 million seats in January, analysts characterized uptake as early-stage. Some, even those bullish on the stock, had anticipated higher numbers.

Althoff indicated the company adjusted its sales approach after analyzing initial results. The focus shifted from simply securing paid Copilot licenses to a broader strategy that also includes its complementary Copilot Chat tool. He stated that he and CFO Amy Hood set aggressive targets for the quarter ending in March, and those goals were met. The company has now established what Althoff called "ambitious" new objectives for the current quarter, which ends in June. "I actually feel very confident in those numbers," he said.

The remarks offer a glimpse into Microsoft's efforts to convert its substantial AI investments into widespread, paid business use, a key metric watched by the market.

Source: CNBC