Key points: Microsoft is updating its Copilot app for corporate employees in a bid to challenge Anthropic's Claude product. The new version merges coding capabilities with tools for building AI agents that can communicate and take on work tasks autonomously. So far this year, Microsoft shares have underperformed most large tech peers. On January 20, 2026, Microsoft CEO Satya Nadella attended the World Economic Forum in Davos, Switzerland. The software giant Microsoft (NASDAQ: MSFT) is adjusting its Copilot AI platform strategy, continuing to push deeper into enterprise AI, while Anthropic's influence in that field keeps rising.
On Friday, Microsoft (NASDAQ: MSFT) rolled out an updated Copilot app that can both write code and handle complex productivity tasks. Through it, Microsoft (NASDAQ: MSFT) hopes to persuade more Office 365 customers to pay for this advanced toolset. Although Microsoft (NASDAQ: MSFT) dominates commercial software thanks to Office, its flagship office AI product has still failed to gain widespread adoption. Of the more than 450 million Office 365 commercial seats worldwide, fewer than 7% have purchased this AI add-on license.
Previously, the 365 Copilot AI assistant for knowledge work and the GitHub Copilot coding assistant for programming were sold separately. The current market trend is that all-in-one, multifunction products from OpenAI and Anthropic are increasingly favored. In June this year, Microsoft (NASDAQ: MSFT) CEO Satya Nadella had already laid out his vision for a future Copilot "super app," and this new release is a step toward making that concept a reality.
The commercial version of Microsoft 365 Copilot traditionally used a subscription model costing $30 per user per month; Microsoft (NASDAQ: MSFT) said the Cowork, Code and Autopilot modules in the new app will shift to usage-based billing, in line with the payment models of other AI products on the market. Jacob Andreou, executive vice president of Microsoft (NASDAQ: MSFT)'s Copilot business, said in an interview: "We set an extremely high bar. The core goal of this product is to maximize user value, output quality and delivery capability. Cost efficiency is not the top priority."
As of Thursday's close, Microsoft (NASDAQ: MSFT) shares had risen 3% this year, underperforming the Nasdaq index and most large tech peers. The new Code feature is based on the same technology as GitHub Copilot, so even non-technical people can easily carry out simple AI-driven programming projects. The Autopilot tab lets users create custom AI agents that can take on work tasks and exchange messages in Teams and Outlook.
David McLaren, head of enterprise data and AI at consulting firm GHD, said the company has deployed Microsoft (NASDAQ: MSFT) Copilot for 12,000 employees, with about 200 people trialing Copilot Cowork for handling complex tasks. McLaren told reporters he is very optimistic about the new app, saying, "It lets more ordinary people use development capabilities that previously resembled GitHub."
Competition in the AI agent arena is heating up further. Meta's Muse app, released earlier this month, has climbed into the upper ranks of Apple's App Store as tools such as Instinct and the open-source model OpenClaw gain popularity. Andreou acknowledged at a customer product preview event in Seattle: "The real problem is that this kind of consumer AI agent is almost impossible to deploy directly in enterprise scenarios." He admitted to reporters that adding coding capabilities inside the app is a catch-up move by Microsoft (NASDAQ: MSFT).
Although Microsoft (NASDAQ: MSFT) is developing its own large models, to meet user demand its products will still call on top models from OpenAI and Anthropic. In the Code module, users can manually choose which model to run, including Microsoft (NASDAQ: MSFT)'s own cost-effective models; but in the Home module used for productivity tasks such as writing reports and adjusting schedules, Microsoft (NASDAQ: MSFT)'s own models are not yet supported.
Enterprises participating in Microsoft (NASDAQ: MSFT)'s Frontier program, an early-access project for new features, will be able to use the Home and Code modules in the coming weeks; the Autopilot automation module will enter private preview at the end of this month. Nadella said on stage at Wednesday's event: "When we look at the Frontier program, we are not focused on any single frontier large model, but on building a complete frontier AI ecosystem. It lets every company integrate its own human capital into AI workflows and build business systems that keep learning."
Comments