This article is part of our series that explores the business of artificial intelligence
This week, Microsoft announced the Copilot key, the first change to Windows keyboards since the release of Windows 95. The key will enable Windows users to invoke Microsoft’s omnipresent AI assistant that helps them accomplish tasks across applications and the operating system.
But the bigger implication is how Copilot is shaping Microsoft’s AI strategy against other players, including OpenAI.
Microsoft has benefitted much from its partnership with OpenAI, making it arguably the dominant player in the generative AI market and a major shareholder of the fastest-growing AI company.
However, Microsoft is also making sure it does not become too dependent on OpenAI. To ensure this, it has been on a crusade to associate its brand with the term “Copilot” as opposed to GPT, which has become synonymous with OpenAI.
In the past few months, Microsoft has made many Copilot announcements, renamed Bing Chat to Copilot, launched Copilot Studio, and is making its new branding present at every possible location.
There are a few key benefits to this. For the most part, Microsoft is using OpenAI’s technology behind the scenes as it is the exclusive license holder. However, by decoupling the brand from OpenAI, Microsoft is also protecting its business against any potential downturn the AI lab might face (as we saw in late November).
At the same time, this allows Microsoft to expand its reach to other growing segments, including the vibrant market for open-source models. Microsoft is already moving to capture part of that market by adding support for open-source LLMs on its Azure AI Studio.
And it is also releasing its own open-source models, including Phi-2, which fits on edge devices. Interestingly, this will allow it to provide on-device Copilot features for Windows users, which is not possible with the API-based OpenAI models. This part from the Copilot key announcement is particularly relevant: “We’re also seeing incredible momentum from our silicon partners AMD, Intel and Qualcomm, all of whom have introduced their latest silicon innovations to the world that unlock new AI experiences on the Windows PC.”
Basically, Microsoft can run any model(s) behind its Copilots and adjust them to the needs of its customers, which span from consumers to enterprises and government entities. And with enough success, it might make Copilot the defacto name for the new wave of AI products (as opposed to the GPT suffix that many companies/labs are adding to their product names).
The risks of Copilot
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