Microsoft has made significant progress with its Copilot AI assistants, securing a major deal with Barclays.
Judson Althoff, a Chief commercial officer of Microsoft, told workers that the British Universal bank signed on to buy 100,000 licenses of Microsoft’s Copilot AI assistant, marking a significant deal.
At the standard list price of $30 per user per month, this deal could generate approximately $36 million in annual revenue for the tech firm, though large clients typically receive bulk discounts.
Microsoft has embedded Copilot, its flagship AI offering, across its products. During the firm’s third-quarter earnings call on April 30, CEO Satya Nadella listed an array of Copilot-infused applications and strong adoptions.
According to Nadella, the tech firm is previewing a first-of-its-kind software engineering agent capable of asynchronously handling developer tasks. He noted that GitHub Copilot now has over 15 million users, a more than fourfold increase year-over-year, with adoption by both digital-native firms like Twilio and large enterprises including Cisco, HPE, Skyscanner, and Target, all leveraging the tool to embed AI across the entire software development lifecycle.
Microsoft reveals its main focus of increasing Copilot adoption
The people who wished to remain anonymous as the deal was privately revealed that Althoff said several dozen clients — such as Accenture Plc, Toyota Motor Corp., Volkswagen AG, and Siemens AG — now have more than 100,000 Copilot users.
Microsoft is concentrating on getting Copilot adopted and is closely monitoring how much of the customer workforce is using the tools, Satya Narayana Nadella, a chairman and chief executive officer of Microsoft, said during a company-wide town hall event.
Following its close partnership with ChatGPT maker OpenAI, and as such, it is inserting Copilot into its suite of productivity apps. The world’s largest software maker is seen as a leader in commercializing AI products.
Microsoft said in January that its AI suite, which includes cloud infrastructure and AI applications, was on track to achieve at least $13 billion in annual revenue.
Despite all these progresses, Wall Street is still eager to see proof that the multibillion-dollar bet is working.
Corporate clients describe Copilot as a measured rollout and a series of trials
Many anecdotes have emerged on corporate customers adopting Copilot, but Microsoft has not shared a total customer count or the financial impact of those sales.
Other corporate clients have said the tools need a lot of internal tweaks and employee training. Moreover, many say their use of Copilot is best described not as a race to equip all of their employees with the expensive software as quickly as possible but as a measured rollout plus a series of trials.
Weeks after disclosing plans to lay off 6,000 workers — nearly 3% of the workforce — Microsoft also has reason to rally the troops. In the meeting, Nadella addressed the cuts and explained that they were driven by organizational changes rather than employee performance.
The layoffs were concentrated on the people who build the company’s products, suggesting that even engineering jobs are not immune to the age of artificial intelligence.
Microsoft declined to comment on the matter. Representatives from Barclays, Accenture, Toyota, Volkswagen, and Siemens also did not provide a statement.
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