Microsoft has updated its Copilot AI platform by integrating coding, productivity, and AI-agent capabilities into a single application to strengthen its position in enterprise AI and compete with companies like Anthropic. The new Code feature enables users, including non-technical workers, to create AI-driven programming projects, while Autopilot allows companies to develop custom agents that manage tasks and communicate via Teams and Outlook.
The update aims to boost adoption of Microsoft's business AI tools. Although Microsoft 365 has over 450 million commercial seats, fewer than 7% currently have licenses for the AI addition. Under the new pricing model, Cowork, Code, and Autopilot will use usage-based pricing. Microsoft will continue leveraging models from OpenAI and Anthropic alongside its own.
This update comes amid intensifying competition in enterprise AI agents, with Microsoft acknowledging that adding coding capabilities helps it catch up with rivals. Microsoft shares were up about 3% this year as of September 24, trailing the Nasdaq and most megacap peers.
