Microsoft Touts Copilot Growth as Paid Uptake Lags
An analyst pegs paid adoption at roughly 3.3 percent of Copilot Chat users, intensifying scrutiny of Microsoft’s AI spending.
Overview
- Microsoft says Microsoft 365 Copilot daily active users rose 10× year over year and average conversations per user doubled.
- The company reports 15 million paid Microsoft 365 Copilot seats with seat additions up 160% year over year, while daily users of the consumer Copilot app nearly tripled.
- Directions on Microsoft’s Mary Jo Foley estimates about 450 million commercial Microsoft 365 users have access to Copilot Chat at no extra cost, with only around 3.3% converting to paid.
- Media reports cite roughly $37.5 billion in quarterly AI spending as executives stress a long-term payoff and note AI capacity is prioritized for Microsoft products such as Microsoft 365 and GitHub Copilot.
- Microsoft is extending Copilot into shopping through partnerships with PayPal, Stripe, and Shopify, as separate reporting points to internal reviews of some Windows AI features and a roughly 1% share for Copilot on the web.