No. of Recommendations: 1
Here's one analyst's estimate of the incremental revenue Microsoft could see from its Office 365 Copilot, which is an AI-powered assistant that can summarize documents, generate presentations from outlines, create action items from meeting notes, etc.
"Macquarie forecasts that Microsoft by the end of FY’25 (June) could generate approximately $7.3 billion of incremental annual recurring revenue (ARR) from 365 Copilot based on estimated initial uptake of 5% (about 20 million users). By FY’26, the Copilot portfolio of products can generate $9.1 billion in revenue and 49 cents in per-share earnings, according to the firm. Macquarie thinks Microsoft shares are undervalued based on the Copilot profit potential. The firm recently lifted its Microsoft price target to $430 from $405."
forbes.com - Microsoft copilot set to provide a generative AI revenue boost blogs.microsoft.com - Introducing microsoft copilot your copilot for work 