Microsoft Corp. (NASDAQ:MSFT) CEO Satya Nadella said Copilot is rapidly evolving from a chat assistant into autonomous AI agents with more than double the seat additions quarter-over-quarter.
Copilot Seats Top 30 Million
During the company’s fourth quarter earnings call on Wednesday, Nadella said, “…we now have over 30 million paid Microsoft 365 Copilot seats with net seat adds more than doubling quarter-over-quarter.”
The CEO added that Copilot is evolving from a chat assistant into autonomous AI agents. The company recently made Copilot generally available for multi-step work tasks with enterprise security and compliance, and introduced autonomous “autopilots,” including an always-on personal agent powered by OpenClaw.
Nadella said the company is unifying its Copilot experiences, including coding capabilities, into a single app for both consumer and enterprise users, with more details to be announced soon. “This is a major step forward,” he said.
The CEO said user satisfaction for Copilot has doubled over the past three quarters, reaching a record high, while latency improved 25% in the latest quarter. Conversations per user nearly doubled year over year, weekly engagement now matches Outlook and Teams, and the company has begun rolling out usage-based billing for Copilot, with thousands of customers already using the new pricing model.
GitHub Copilot has reached 50 million users, with revenue growing more than 60% quarter over quarter, he added. The company attributed the acceleration to usage-based billing, continued enterprise seat growth, and higher consumption revenue.
AI Push Drives Copilot Growth
In May, BNP Paribas analyst Stefan Slowinski said Microsoft is gaining traction in its AI strategy as Copilot adoption, user sentiment, and engagement across Excel, PowerPoint, and Word improve. He expects Copilot seats to surpass 25 million by the end of fiscal 2026, increasing by more than 10 million over the past two quarters.
Microsoft reported fourth-quarter revenue of $90.01 billion, up 18% year over year and above analysts’ estimate of $87.62 billion. Growth was driven by Intelligent Cloud, where revenue rose 32% to $39.3 billion, while Azure and other cloud services surged 43%. Productivity and Business Processes increased 14% to $37.8 billion, while More Personal Computing declined 4% to $12.9 billion. Overall cloud revenue climbed 27% to $59.3 billion.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Recent Comments