This view was echoed by Wedbush analyst Dan Ives, who noted that recent channel checks with Microsoft’s AI customers show increased interest in the product in 2024 and good prospects for monetizing the product.
Ives believes that over the next three years, more than 60% of Microsoft’s customer base will use this AI functionality for enterprises and commercial organizations.
Usage of the chatbot tool will also increase over the next three to six months, making fiscal 2025 a turning point for the company.
The growing monetization potential of Microsoft’s AI tools led Ives to raise his price target on Microsoft shares to $450 from $425; this represents a potential increase of 21% from current levels.
Copilot, which Microsoft calls your “everyday AI companion,” will have more applications across the company’s product line, including Windows, Power Pages, Dynamics 365 and Office, as customers look to increase their productivity.
Source: Ferra
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