Microsoft says it has over 20M paid Copilot users, and they really are using it

Microsoft Reports Growing User Base for Copilot AI Tool

Despite previous perceptions that Microsoft’s Copilot AI tool was not widely used, the tech giant announced on Wednesday that its user base and engagement are actually on the rise. Copilot is integrated into various M365 apps such as Word, Excel, and Outlook email, making it a valuable tool for many users.

During the company’s quarterly earnings conference call, Microsoft CEO Satya Nadella revealed that M365 Copilot now has 20 million paid enterprise Copilot seats. This marks a significant increase in the number of companies paying for over 50,000 seats, with notable clients such as Bayer, Johnson & Johnson, Mercedes, and Roche having more than 90,000 seats. A recent deal with Accenture for over 740,000 seats was also highlighted as a major win for Copilot.

Nadella emphasized that people are actively using Copilot, engaging with it as much as they do with email. He shared that Copilot queries per user have increased by nearly 20% quarter over quarter, with weekly engagement now matching that of Outlook. This high level of engagement reflects the tool’s importance in users’ daily workflows.

One key aspect of Copilot that sets it apart is its diverse range of models, unlike some other AI tools that rely on a single model. According to Nadella, users have access to multiple models in chat, allowing for intelligent auto-routing and the ability to combine models for optimal responses.

Microsoft’s support for Anthropic’s Claude further enhances Copilot’s capabilities, providing users with advanced features for document editing and collaboration. Analyst Keith Weiss from Morgan Stanley praised the impressive growth of Microsoft 365 Copilot, noting that it has exceeded expectations.

Agent mode, which is now the default experience across Copilot and Microsoft Office apps like Word, Excel, and PowerPoint, has been a key driver of usage. This feature streamlines the interaction between users and the AI tool, making it easier to delegate tasks and complete work efficiently.

Recently, Microsoft made Copilot’s agentic capabilities generally available, allowing users to take multi-step actions directly within documents. This new functionality enables a more seamless workflow, empowering users to delegate tasks and collaborate effectively using Copilot.

Overall, Microsoft’s Copilot AI tool continues to gain momentum and attract a growing user base, demonstrating its value in enhancing productivity and efficiency for businesses and individuals alike.