Technology giant Microsoft (MSFT) has unveiled a new version of its Copilot artificial intelligence (AI) assistant for businesses.
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The new product is a Copilot Chat option that stops short of providing users with the full Microsoft 365 Copilot AI assistant. Microsoft is hoping the new AI chat function that is available at a lower price will draw-in more users.
Microsoft 365 Copilot launched in late 2023 at a cost of $30 per person a month, but some analysts have characterized the product’s uptake as “slow” and “underwhelming.” Still, Microsoft executives have said the company remains determined to popularize generative AI within the workplace and among its corporate client base.
Pricing Model
The new Copilot Chat can retrieve information from the Internet and summarize text in uploaded documents. It can also enrich answers with information from third-party sources. However, unlike the more fulsome Microsoft 365 Copilot, the new Copilot Chat can’t be found in Office applications such as Word and Excel.
People can access Copilot Chat in the Microsoft 365 Copilot app for Windows, Android and iOS. Costs for Copilot Chat vary depending on what employees do with it. Microsoft said it calculates the charges for Copilot Chat based on the number of messages that a client uses. Each message costs a penny, according to a Microsoft blog post.
MSFT stock has risen 10% in the last year.
Is MSFT Stock a Buy?
The stock of Microsoft has a consensus Strong Buy rating among 28 Wall Street analysts. That rating is based on 26 Buy and two Hold recommendations issued in the last three months. The average price target on MSFT stock of $506.96 implies 21.96% upside from current levels.
