In the software sector, Microsoft spearheaded a monumental AI-native transition around 2025, fundamentally altering knowledge work. By embedding Copilot, an AI assistant, across the entire Microsoft 365 suite, they innovated the very mechanism of work. Copilot moves beyond simple summaries; it automatically structures and drafts professional reports in Word based on user-provided data. In Excel, Copilot allows users to request data analysis and trend visualization in natural language, eliminating the need for complex formulas.
Microsoft’s AI-native strategy provides the specific, clear value of dramatically enhanced knowledge worker productivity. This focus on core business value has been key to their rising subscription rates and company valuation, as detailed in reports like those from the Second Microsoft Report on AI and Productivity Research.
How we drive AI-powered operations to ensure internal efficiency and long-term product value proposition
For companies where AI features are difficult to embed directly into the product or where customers don’t heavily factor AI adoption into their purchasing decisions, maximizing internal operational efficiency becomes the primary path to business impact. These companies must use advanced AI tools to improve their cost structure and service quality, then pass these benefits to the customer as competitive pricing or enhanced speed and accuracy.
