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Microsoft 365 Copilot's commercial failure

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Re: Microsoft 365 Copilot's commercial failure

#21
It’s garbage. My company has it, presumably by default. You ask it a simple question like “find the company holidays document” and it just can’t do it. It’s somehow not hooked up to the basic sharepoint document storage for the company.

Traditional search works fine.

Re: Microsoft 365 Copilot's commercial failure

#22
post #10
post #8

I still think there's a potential niche for 365 Copilot in its boringness. At work (not a tech company), there's an ongoing, slow, 365 rollout. The people who participate in the rollout are not technical in any way, but they all love it because they're not regular ChatGPT/Claude users, either. In a way, the restricted feature-set of Copilot compared to ChatGPT helps them, they're overwhelmed enough by Copilot. IT lov…

Boring doesn’t bring in the billions and billions in stock though

Boring is a short term thing - I think it's most useful to think about things like copilot AI for all windows users as a longer term initiative. Right now, I think MS is just letting people get used to a basic free tier. They will observe how Windows users put it to use, see to what degree of involvement people have with it, and evolve the product (and its pricing) from there.

Is it raking in cash right now? No. But that's just now. MS can and I feel is thinking longer term. Everyone is on a "Crash Dammit" Economist front-cover mode right, trying to will a crash into existence. Microsoft can think longer term about it - after all, we see younger generations diving in to make use of related technologies. Older demographics will, and are, slowly finding out what to make of the tech that is free with an OS install, and MS will see what kind of business to make out of that over time.

The problem with this broader topic is that people are restricting the time frame of the conversation to Right Now. MS doesn't need to worry about that so much, in the grand scheme of things.

Re: Microsoft 365 Copilot's commercial failure

#23
post #5
post #3

Earlier quoted context omitted.

Part of the reason is Microsoft's borgy/corpo-confusing service levels. I have a paid 365 account and couldn't determine from logging in or account info screens if I was on paid or just the freemium version with my 365 plan In testing out what I did have access to with Copilot, it was incredibly bad compared to ChatGPT or Claude, so I decided not to pay for Copilot whenever I see an ad for it.

Funny how renaming standard Office apps to "Microsoft 365 Copilot" in mobile apps, web home page for office.com etc. did NOT make people realize they should buy an additional $30 plan called "Microsoft 365 Copilot" to actually get to use all features of Microsoft 365 Copilot. If only MS could have asked Copilot whether their naming strategy makes sense.

Microsoft did this same thing with Teams and OneDrive back in the day. It took quite a while before they straightened that mess out.

Not to mention ton when they renamed Lync to Skype…

Re: Microsoft 365 Copilot's commercial failure

#24

Earlier quoted context omitted.

Oh that's true. If AI is a bubble, and if it implodes, then MS might be the only AI place left standing if it can get its product into all of the non-tech companies in the world.

0% chance. The MIT 95% study showed that the tools are good, integration and process is the problem. There's a ton of work for people that can come into a company and set up a bespoke AI control plane/orchestration, the tooling needs to evolve a little bit so this can be a sane, repeatable business though.

We're trying/pushing this now as a small business, and it doesn't really work. Each deployment is/would be far too niche and expensive. No one has really gotten on board, so we've mostly just been doing normal data engineering/orchestration work instead.

Re: Microsoft 365 Copilot's commercial failure

#25

I perceive MS as just being in the "get people using it, accustomed to it, used to it, habituated to using it throughout their day" phase for the default free Win10/11 tier. That little copilot icon is sitting there in the task tray, clickable and usable. I think people will, to whatever degree makes sense for them, get used to making some use of the basic free tier. Monetization / restrictions requiring some degree…

That little copilot icon will sit there unused and unloved by people who will, much like with online ads, screen it out whilst they do what they actually want to do.

Ads make money because people click on them.

Re: Microsoft 365 Copilot's commercial failure

#26

I perceive MS as just being in the "get people using it, accustomed to it, used to it, habituated to using it throughout their day" phase for the default free Win10/11 tier. That little copilot icon is sitting there in the task tray, clickable and usable. I think people will, to whatever degree makes sense for them, get used to making some use of the basic free tier. Monetization / restrictions requiring some degree…

The problem is that it doesn’t actually do anything.

It’s “installed” at my company but basically refuses to interact with basic company data like files in sharepoint.

Is it the IT department’s fault for not enabling something? I don’t know, but does that matter?

If the normal search system has access to the data why doesn’t copilot? Surely it would be trivial for Microsoft to run copilot in a way that keeps company data private so that they could actually turn it on and make it useful by default.

Re: Microsoft 365 Copilot's commercial failure

#27

I perceive MS as just being in the "get people using it, accustomed to it, used to it, habituated to using it throughout their day" phase for the default free Win10/11 tier. That little copilot icon is sitting there in the task tray, clickable and usable. I think people will, to whatever degree makes sense for them, get used to making some use of the basic free tier. Monetization / restrictions requiring some degree…

That little copilot icon will sit there unused and unloved by people who will, much like with online ads, screen it out whilst they do what they actually want to do.

For some, but what about the others? The reddit mentality of "everyone hates LLM AI tools" is just a very loud segment. What about everyone else? What about a random Joe who asks it questions to find some path through figuring out why their computer is acting all wonky? What about the people who don't know the first thing about dealing with their water heater suddenly going south, and ask it some basic questions of how to approach that problem? That is, treating it as an OS-native improvement over a search engine.

The list goes on and on, and we have to take time into consideration: people may have default strong feelings against the tech in question now, but often that's just a default stance. Over time, people will dip their toes in, and make use of it to whatever degree makes sense for them. Don't mistake current vocal criticism for the end all, be all, stance that will last forever: people get used to stuff, use it a bit, or more than a bit, time passes, and the tech slowly melds itself into people's lives in some manner and in some form: MS will wait and observer, and evolve the product to suit that slow change over time.

Re: Microsoft 365 Copilot's commercial failure

#28
post #5
post #3

Earlier quoted context omitted.

Part of the reason is Microsoft's borgy/corpo-confusing service levels. I have a paid 365 account and couldn't determine from logging in or account info screens if I was on paid or just the freemium version with my 365 plan In testing out what I did have access to with Copilot, it was incredibly bad compared to ChatGPT or Claude, so I decided not to pay for Copilot whenever I see an ad for it.

Funny how renaming standard Office apps to "Microsoft 365 Copilot" in mobile apps, web home page for office.com etc. did NOT make people realize they should buy an additional $30 plan called "Microsoft 365 Copilot" to actually get to use all features of Microsoft 365 Copilot. If only MS could have asked Copilot whether their naming strategy makes sense.

The product naming is completely insane. In the span of a year my corporate portal changed name from portal dot office dot com, to Microsoft 365 dot com, and now its copilot something or other dot com.

The portal completely changed in design and the former portal functionality is hidden in a tiny search icon in a knock off chatgpt interface.

The average non-technical corporate user must be so confused.

Re: Microsoft 365 Copilot's commercial failure

#29
post #14
post #9

Unsurprising. I tried it probably a year ago. I asked it what meetings were in my calendar for the day and it couldn’t even tell me that. To add insult to injury, they wanted an annual commitment with up front payment at the time.

Many other recent Microsoft products are below average. I'm thinking Teams, Outlook, Windows 11. Azure and Office are better. I guess they spend their money on sales and licensing and not on developing good products now?

Sales and marketing is the only thing they've ever been good at. Really.

They make their money because they can go to the largest corporations & governments, talk to the CTO and tell them they have a product for everything that checks all their regulatory requirements, and all these products kind of sort of work together.

Who else can offer that?

For Microsoft, engineering is just about checking boxes on feature lists. Quality doesn't matter and engineering is a cost to be minimized. The people who make the purchasing decisions aren't the ones who have to use their stuff.

Re: Microsoft 365 Copilot's commercial failure

#30

Earlier quoted context omitted.

0% chance. The MIT 95% study showed that the tools are good, integration and process is the problem. There's a ton of work for people that can come into a company and set up a bespoke AI control plane/orchestration, the tooling needs to evolve a little bit so this can be a sane, repeatable business though.

We're trying/pushing this now as a small business, and it doesn't really work. Each deployment is/would be far too niche and expensive. No one has really gotten on board, so we've mostly just been doing normal data engineering/orchestration work instead.

Think of it like FDE work. It's cost front-loaded but very profitable on the back end, so early on you want to limit it to lighthouse customers. That being said my suggestion is to build some tooling for now to support your existing work that can be expanded gradually as a substrate for AI service, I expect the tools should mature within 6mo-1year, so you can offer trial AI services to new clients to reassess periodically.
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