Microsoft lost its way in the AI race. Can Copilot get it back on course? | Fortune

A team of engineers in Redmond works early on a cold, gray morning to deliver a new AI personal assistant product. The assistant is designed to handle tasks such as booking flights, responding to emails, and finding local services. Competing companies are also building similar products, increasing pressure on the team. Satya Nadella visits and demonstrates an application for instructing and controlling multiple AI agents, called “Chain of Debate.” Nadella created the application himself using AI-assisted “vibe coding,” setting an expectation for intense effort. The team later launches Copilot Tasks in late February, with Nadella’s prototype influencing features such as model council and other Copilot components.

"The team is working on a new AI product, one that functions as a personal assistant, capable of doing everything from booking flights to responding to emails to finding a good local plumber. They know competing teams at other companies are working on similar products. As if they needed a reminder that a lot is riding on their work, Satya Nadella drops by. He wants to show them something."

"The Microsoft CEO opens a laptop and fires up an application. It's a kind of system for instructing and controlling multiple AI agents. He calls it "Chain of Debate." As Nadella walks them through the demo, the engineers trade knowing looks, the sort regulars at the local basketball court exchange when they realize a newbie's got game. Because Nadella didn't get someone to build this app for him. He created it himself, vibe coding with an AI tool."

""That set the tone for how hard the team was going to push," recalls Jacob Andreou, the executive vice president responsible for the design of Copilot, Microsoft's AI assistant. He was in the room with folks, like over their shoulder, there with his machine out. Watching the boss get such excitement out of building new things inspired the team. It wrapped up its big push in late February when it rolled out Copilot Tasks, the computer-using personal assistant AI tool."

"(Nadella's own prototype served as the model for a feature called the model council as well as other components of Copilot.) But the fact that Nadella is spending so much time with the teams building AI products, even rolling up his sleeves and building prototypes himself, says a lot about Microsoft's current predicament. After all, this is a $3 trillion company, not some scrappy startup where t"

Read at Fortune