Executive Focus: Microsoft’s AI Strategy

• Microsoft’s strategic focus on AI is affecting nearly every aspect of the company’s products, services, and technologies.
• This AI strategy evolves the structure of applications, from the traditional three-tier model to one based on Copilots, agents, and data.
• Organizations should expect that Microsoft’s applications will adopt this model.
• Microsoft is investing in new tools, services, and hardware to help customers build AI-centric applications.

Since the release of ChatGPT in Nov. 2022, Microsoft is focusing its development teams, marketing, and executive presentations on an AI-centric strategic message. Beginning with GitHub Copilot and followed by Microsoft 365 Copilot, the company has been evangelizing and implementing applications, tools, services, and technologies to support its AI vision. The most visible of Microsoft’s AI investments, “Copilot,” represents only one layer of a comprehensive strategy designed to infuse AI at every level of the application stack; taken to its logical conclusion, Microsoft is attempting to redefine the structure of an application.