Copilot retreat/productization, agents, M365 roadmap
Key Questions
How many paid seats does Copilot have and what revenue does it generate?
Copilot has reached 20M paid seats representing a $13B run-rate, though adoption remains low at 3.3% with many pilots failing.
Why did Microsoft cancel its internal Claude Code licenses?
Microsoft dropped Claude Code after budget overruns driven by high token costs.
What new features are coming to Copilot Studio?
Copilot Studio has reached general availability with Dataverse integration, a Planner Agent, and support for Claude in an agent-first multi-model approach.
What is the EY partnership with Microsoft focused on?
Microsoft and EY are committing $1B to help customers move from AI pilots to production with agentic AI.
When are new Microsoft 365 tiers expected?
A new M365 E7 tier is planned for May 2026 along with SKU changes in July 2026.
What competitive pressures does Copilot face?
Copilot faces competition from Claude and Cursor amid ongoing struggles with AI monetization.
What changes has Microsoft made to the Copilot button in Office?
Microsoft admitted that forcing the floating Copilot button was a mistake but noted that engagement still increased.
What is the focus of the upcoming M365 roadmap updates?
The roadmap includes new agentic experiences in Outlook for email and calendar actions.
Copilot 20M paid seats ($13B run-rate) but 3.3% adoption/80% pilots fail reinforced by EY $1B initiative; AI monetization struggles amid Claude/Cursor competition. Microsoft drops Claude Code after budget overrun (internal licenses canceled due to token costs). Copilot Studio GA with Dataverse, Planner Agent, Claude; agent-first multi-model. New M365 E7 tier May 2026; July 2026 SKU changes.