Microsoft Unveils New AI Features as Investors Seek Signs of ROI on AI Investments

Microsoft (MSFT) is pushing forward with its ambitious artificial intelligence (AI) initiatives, launching new features aimed at helping enterprises harness AI’s power to improve workplace efficiency. The tech giant’s latest development comes in the form of “autonomous agents,” which were announced during its AI Tour event in London this week. As CEO Satya Nadella and Jared Spataro, CMO of Copilot at Work, led keynotes, Microsoft revealed that these new tools will be available for public preview next month.

Autonomous agents are custom-built AI apps designed to handle repetitive tasks that typically occupy much of employees’ time. By automating functions like data entry or processing client proposals, the goal is to allow employees to focus on higher-value projects. Microsoft highlighted how major companies like McKinsey & Company and Pets at Home have already used these agents to streamline labor-intensive processes, reducing workloads and increasing efficiency.

These autonomous agents can be created through Microsoft’s Copilot Studio, a platform that uses low-code or no-code instructions. This means that users don’t need programming expertise to build their own AI tools. The process is straightforward: users give the agent a task, such as sorting incoming customer service emails. They then outline, in natural language, what specific information the agent should pull from each email, how to handle incomplete data, and what the agent should do with the sorted information.

What’s particularly appealing about Microsoft’s new tools is the added flexibility for businesses. Users can attach relevant files, protocols, or other documents to guide the agents in handling customer data appropriately. Additionally, the agents can be monitored by workers who step in to check the AI’s progress, ensuring that the results are accurate. This also addresses a growing concern with AI: so-called “hallucinations,” or errors where the AI provides incorrect or nonsensical information. By allowing workers to verify the agents’ work, Microsoft aims to prevent these mistakes from impacting business operations.

This development is part of a broader strategy for Microsoft to capitalize on its significant investments in AI. The company has poured billions into artificial intelligence, both through its internal efforts and partnerships, such as the one with OpenAI, the creator of ChatGPT. Microsoft’s commitment to AI is clear from its financial reports, which show massive spending on capital expenditures, much of which has gone toward AI and cloud infrastructure.

In its most recent quarterly report, Microsoft’s CFO Amy Hood revealed that the company spent $19 billion on capital expenditures, including finance leases. A significant portion of that went toward AI and cloud-related expenses. This represents a substantial increase from previous years, with Microsoft’s total capital expenditure reaching $55.7 billion in fiscal 2024—up from $31.9 billion in 2023 and $29.2 billion in 2022.

Investors are watching these developments closely, as Microsoft’s bold investments in AI will need to start showing tangible returns. The company is banking on its Copilot platform, which integrates AI capabilities across its suite of business applications, to be a key driver of future revenue. Currently, 2.1 million users engage with Copilot each month, but Microsoft is eager to expand that number as it looks to turn its AI ambitions into a major revenue stream.

By helping businesses optimize workflows, cut down on tedious manual tasks, and create custom AI tools, Microsoft hopes to establish itself as a leader in enterprise AI solutions. The launch of autonomous agents is the latest example of how Microsoft is striving to make AI more accessible for everyday business use while also showcasing how its enormous AI investments are beginning to pay off. However, with Wall Street increasingly scrutinizing tech companies’ AI spending, it remains to be seen how quickly Microsoft’s AI-driven offerings will translate into significant revenue growth.

As the tech world waits for signs of how AI will revolutionize industries, Microsoft’s developments in this area underscore the company’s intent to stay at the forefront of this rapidly evolving field. The coming months will be critical in determining whether Microsoft’s investments can deliver the returns that investors are hoping for.