Microsoft's Copilot Faces User Challenges Amid AI Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy MSFT?
Source: seekingalpha
- Declining User Adoption: A survey by Recon Analytics revealed that the percentage of primary users of Copilot dropped from 18.8% to 11.5%, indicating a rising preference for competing products and increasing competitive pressure on Microsoft in the AI market.
- Increased Enterprise Usage: The adoption rate of Copilot within Microsoft's sales team surged from 20% to over 70% in the past year, demonstrating significant progress in encouraging employee use of AI tools, although overall market performance remains lackluster.
- Increased Advertising Spend: Microsoft allocated $60 million for Copilot television ads in 2025, reflecting its commitment to brand promotion, although this is disproportionately high compared to less than $1 million spent on LinkedIn ads.
- Integration Challenges: The lack of a cohesive experience across Copilot's various versions has led to user confusion, an issue acknowledged by Microsoft executives who are working to improve it to enhance user satisfaction and market competitiveness.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 423.370
Low
500.00
Averages
631.36
High
678.00
Current: 423.370
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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