Microsoft has launched a new AI service that has boosted its stock price, Market Watch reports.
Microsoft 365 Copilot is an AI add-on to the traditional office suite. It is priced as a $30 add-on to business licenses. Copilot promises to boost office productivity by generating emails, analyzing excel spreadsheets, or drafting memos.
Due to Office’s dominant role in the corporate world, this pricing for AI tools will set the standard for the industry. Many competitors will not be able to compete with an integrated solution that naturally integrates with their workflow.
Microsoft shares have been up 4% so far, though some analysts expect it to continue a quick climb.
“We view the initial pricing details as very bullish for the total addressable cloud AI market opportunity for Microsoft that could increase cloud revenue annually by 20% by 2025 based on our estimate,” Wedbush Securities analyst Dan Ives said in a note Tuesday in which he maintained an outperform rating and a $375 price target on the stock.
Meta’s own AI tool, Llama, has also been developed in partnership with Microsoft. While not as advanced, it is available for academic use though not yet to commercial entities.
