Microsoft punts plan for new AI 365 bundles in favor of pilot tests, sources say
Microsoft has pressed pause on a major AI overhaul of its popular 365 software suite, according to people familiar with the matter.
CEO Satya Nadella and his senior leadership team held executive reviews this summer to consider options that included repackaging new AI features into existing licenses or creating a more expensive bundle with AI capabilities.
The plans revolved around Microsoft's Copilot tools. These are powered mostly by OpenAI's GPT AI models, and Wall Street has high expectations for the new offerings.
The aim was to finalize any changes before Microsoft sales teams returned from the summer slowdown in September. It's now late September and the decision has been made. Kind of.
Spearheaded by Chief Commercial Officer Judson Althoff, the company instead decided to start a pilot test in certain geographies to find out what customers are willing to pay for, a person familiar with the plan said, noting that the tests will run throughout the fiscal year.
Other changes Microsoft is considering for its 365 software bundles is a new suite just for security features, the people also said. They asked not to be identified discussing private matters.
