Microsoft’s (MSFT) rollout of new features on its AI-powered assistant Copilot for the Microsoft 365 suite failed to excite investors on Tuesday. Its shares fell by over 3% around midday.
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This came as tech rival Alphabet’s (GOOGL) Google launched Gemini 3.0, the most advanced model of its AI system that “sets a new bar for AI model performance.”
Microsoft Adds More AI Features to Copilot 365
At its Ignite 2025 event, Microsoft announced that it has introduced the Microsoft 365 Copilot Work IQ, a tool that provides tailored insights; AI-powered Agent Mode for the office apps, and Agent 365, a tool to manage company AI agents. The tech giant described the Work IQ as “the intelligence layer” behind the Copilot assistant for its suite of office productivity tools.
The Work IQ tool combines a company’s data with stored memory from its activities across apps such as Word, Teams, Outlook, Excel, and PowerPoint to provide tailored insights for the company’s business activities. The tool will also be able to suggest AI agents and enable businesses to create their own custom versions.
Microsoft Updates Agent Mode on Copilot
The Agent Mode, which was introduced earlier in September, provides AI-powered chat functions on the productivity apps, with the latest update extending the function to PowerPoint. The feature enables companies to create spreadsheets, presentations, and documents, with the option to select from AI models from Anthropic (ANTPQ) and OpenAI (PC:OPAIQ).
Lastly, the Agent 365 features make it possible for companies to run, organize, and govern their AI agents, including those created through rival AI systems.
The new features come several weeks after Microsoft rolled out AI buddy ‘Mico’ for Copilot and added several other features to turn the AI assistant into a collaborative machine. The tech giant continues to develop its own in-house AI models to reduce reliance on OpenAI. It has also partnered with chip designer colossus Nvidia (NVDA) to invest up to $15 billion in rising AI startup Anthropic.
Is Microsoft a Buy, Hold, or Sell?
On Wall Street, Microsoft’s shares currently enjoy a Strong Buy consensus rating. This is based on 35 Buys issued by analysts over the past three months. Moreover, at $632.07, the average MSFT price target indicates more than 29% upside from the current trading level.
