Microsoft is actively diversifying the artificial intelligence models powering its Microsoft 365 Copilot, moving beyond its reliance on OpenAI's GPT-4. This shift aims to reduce costs and improve efficiency for enterprise users.
Sources indicate that Microsoft is exploring both internal models, including the new Phi-4, and third-party options to enhance the performance of its AI assistant integrated into applications like Word and PowerPoint.
Despite being a significant partner of OpenAI, Microsoft is adjusting its strategy amid concerns about the cost and speed associated with using OpenAI's technology. A company spokesperson confirmed that they continue to collaborate with OpenAI on advanced models.
Microsoft's efforts reflect broader trends within the company, as other units like GitHub have also started incorporating alternative models from companies such as Anthropic and Google. Analysts anticipate that Microsoft will see increased adoption of 365 Copilot, projecting over 10 million paid users this year.
However, challenges remain, with many enterprises still in the pilot phase of their 365 Copilot initiatives, according to a Gartner survey.