- Only 3.3% of Microsoft 365 users truly pay for Copilot
- Microsoft experiences 15 million paid seats regardless of 450 million free users
- Satya Nadella claims Copilot is a “true day by day behavior” globally
Microsoft CEO Satya Nadella lately declared its Copilot platform is “changing into a real day by day behavior,” noting development throughout AI chats, search, looking, buying, and working system integrations.
On paper, Microsoft experiences 15 million paid Microsoft 365 Copilot seats, displaying 160 % development yr over yr.
Nonetheless The Register experiences only 3.3% of Microsoft 365 and Workplace 365 users who entry Copilot Chat truly pay for it.
Paid adoption lags far behind general utilization
Analyst Mary Jo Foley factors out that roughly 450 million industrial Microsoft 365 users have entry to Copilot for free, which means the paid base is relatively tiny.
Nadella emphasised day by day habits, claiming “day by day lively users are up tenfold yr over yr,” with conversations per person doubling.
Nonetheless, the size of non-paying users undermines the notion of widespread adoption, regardless of the CEO’s statements.
Microsoft’s funding in AI instruments reached $37.5 billion in FY26 Q2, spanning Microsoft 365 Copilot, GitHub Copilot, and different productiveness instruments.
CFO Amy Hood mentioned judging AI spend solely by Azure income is deceptive, explaining, “I believe many traders are doing a really direct correlation between the capex spend and seeing an Azure income quantity.”
Hood added that a big share of AI capability is first allotted to Microsoft merchandise earlier than exterior Azure purchasers.
Nadella bolstered this, telling traders to concentrate on the lengthy sport relatively than short-term uptake.
These remarks acknowledge the present disconnect between large AI spending and minimal paid Copilot adoption.
Microsoft 365 Copilot launched in late 2023 as a $30-per-user month-to-month add-on.
It integrates AI instruments throughout Phrase, Excel, PowerPoint, Outlook, and Groups. Copilot acts on behalf of users, looking paperwork, analyzing conferences, and automating routine workflows.
Microsoft claims it boosts productiveness, and Lloyds Banking Group estimates it saves employees 46 minutes per day.
Despite these claims, paid adoption stays low relative to Microsoft’s world person base.
Even inside Microsoft, there are experiences that Copilot’s rollout is below evaluation and the corporate could take away or streamline AI options in Home windows 11.
Not simply Home windows 11, the corporate is reportedly additionally keen to chop AI options in different apps the place utilization doesn’t justify the funding.
Foley notes the large free person base additional emphasizes how few users pay. Nadella insists Copilot is rising quickly, but the figures present the paid footprint is extraordinarily restricted.
The hole between claimed “true day by day behavior” utilization and precise income suggests the long-term payoff for Microsoft’s AI funding stays unsure.
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