Microsoft 365 Copilot adoption is under 4.5% after 3 years, only 1% use it weekly, yet prices went up
Key Points:
- Despite Microsoft integrating Copilot extensively into Windows 11 and Office over three years, fewer than 4.5% of Microsoft 365’s 450 million commercial users pay for Copilot’s premium features, with only about 1% using it weekly.
- The paid Microsoft 365 Copilot add-on, which costs up to $30 per user per month on top of base subscriptions, offers advanced AI capabilities like reading emails and files via Microsoft Graph, but adoption remains low due to high costs and limited perceived value.
- Microsoft has incorporated Anthropic’s Claude AI models into Copilot, signaling a lack of confidence in its own AI model and effectively selling access to third-party AI under the Microsoft brand.
- Copilot has faced widespread criticism for being forcibly embedded in apps users don’t want it in, earning a negative reputation ("Microslop") and leading Microsoft to scale back some Copilot branding and features.
- The recent Microsoft 365 price hike bundles more AI features regardless of demand, reflecting Microsoft’s bet that AI integration will drive future growth despite current low adoption and competition from rivals like Gemini and Claude.