Microsoft is taking a cautious approach with its 365 software suite, deciding to pause on an AI overhaul amid discussions on customer needs and pricing.
The company, led by Satya Nadella, had reviewed options for repackaging AI features but has opted for pilot tests to gauge customer willingness to pay.
Microsoft's Copilot tools are seen as key to future offerings, generating high expectations but also posing risks due to their potential impact on existing revenue sources.
The decision reflects the importance of Microsoft 365 as a revenue driver, generating approximately $20 billion in quarterly revenue without new AI capabilities.
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